Rajasthan fuel pumps go on indefinite strike amid demands of reduction in VAT on petrol, diesel

Petrol pump owners across Rajasthan on Friday started an indefinite strike demanding reduced Value Added Tax (VAT) on petrol and diesel. The call for a strike was made by the Rajasthan Petroleum Dealers’ Association (RPDA) earlier this week.

The association has cited that the VAT on petrol and diesel in Rajasthan is higher than that of neighbouring states. Rajasthan currently has the highest VAT on petrol and diesel in the country. The VAT for diesel is at 19.3% while for the petrol it goes as high as 31.04%.

While the neighbouring state Haryana has a 18.20% VAT on petrol and 16% on diesel. The states with the lowest VAT on petrol and diesel are Punjab and Gujarat. Both states have 13.77% VAT on petrol and 9.92% on diesel.

The owners of fuel stations in Rajasthan said that the high VAT rates have led to a decrease in revenue as people are preferring to buy fuel from neighbouring states. They further claim that the high VAT has made the fuel unaffordable for many consumers.

The association also addressed the inconvenience it will cause for the people by saying that it’s their fight as well, as many daily consumer goods have become more costly due to the high fuel prices in the state.

Earlier, the association held a short symbolic strike on Wednesday and Thursday to make the government equalise VAT on petrol and diesel with the rates in Punjab. RPDA further said any past reduction in VAT has always resulted in improved sales and tax revenues.

“The executive meeting of the association was held on Thursday evening. In this, the association unanimously decided to hold a statewide indefinite strike from 6 am on September 15,” said the statement from RPDA.

Meanwhile, the state government has signalled that it is not going to budge as Chief Minister Ashok Gehlot on Wednesday accused the central government for levying additional charges and said that it is upto them to reduce the prices.

The state currently has more than 6,700 fuel stations. The price of petrol in Jaipur is at Rs 108.45 per litre while the price of diesel is Rs 93.69 per litre.

The RPDA has warned the government that if the VAT is not reduced then they will continue the strike indefinitely.