Petroleum dealers in Punjab protest against high fuel taxes

Petroleum dealers in Punjab launched a protest against higher taxes on petroleum products by refusing to buy fuel from oil companies for three days. J. P. Khanna of the Punjab Petroleum Dealers Association President said, “We will not be buying fuel from all oil companies for three days starting today to register our protest against high rate of taxes imposed on petrol in the state, which has resulted into wide gap between its prices in Punjab and neighboring states. As a result of it, we are facing huge losses. We will sell fuel to consumers till our stock lasts.” The association represents more than 2,700 fuel outlets in Punjab. The Punjab government earns Rs 1,840 crore (US$411.6 million) annually from the VAT imposed on petrol and diesel. The monthly consumption of petrol and diesel in the state stands at 45,000 kilo liters (kl) and 1.75 lakh kl, respectively. Petroleum dealers are demanding that the Punjab government reduce taxes like VAT, surcharge, octroi particularly on petrol which is highest in the northern region. They claimed that high rate of taxation on petroleum products had hit their business hard, forcing a large number of fuel outlets to shut down their businesses. (July 7, 2011)