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This Article is From May 24, 2010

Most Delhi petrol pumps shut to protest increase in VAT

New Delhi:
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Most petrol pumps across Delhi are closed today to protest the increase in VAT on diesel that has made the fuel costlier in the national capital compared to neighbouring Haryana.

The petrol pump dealers have also threatened to go on indefinite strike from June 14 to protest the hike.

"Our pleas to the Delhi government have gone unheeded, so we are left with no option but to go on indefinite strike," Delhi NCR Petrol Dealers Association President Ajay Bansal told PTI.

Earlier on May 14, petrol pump dealers had closed their shutters for 24 hours pressing for their demand.
They had warned that pumps will remain shut on every Monday beginning May 24 if their demands are not met and they will go on indefinite strike from June 14.

Bansal said sales are drying up as the differential between diesel prices in Delhi and Haryana is nearly Rs 4 per litre.

In June 2008, Haryana reduced VAT on diesel to 8.8 per cent from 12 per cent, thereby making it cheaper than Delhi where VAT on fuel was 12.5 per cent.

"From 13.5 crore litres a month, the sales of diesel in Delhi came down to 8.5 crore litres a month (loss of 37 per cent)," he said.

The already "bleeding" dealers were dealt with another blow when the Delhi government raised VAT on diesel to 20 per cent from April 1. "This has resulted in a difference of almost Rs 4 per litre in the prices of diesel between Delhi and Haryana," Bansal said.

Delhi is bordered from all sides, but East, by Haryana.

The increase in VAT has made diesel in Delhi more expensive than even Uttar Pradesh, which is East of Delhi. (With PTI inputs)

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