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AC, washing machine and bike! VAT-affected petrol pumps of MP offer deals on fuel

BusinessToday.In     September 11, 2018

In an unprecedented move, but one that highlights the desperation of people affected by rising fuel prices, Madhya Pradesh petrol pump owners are offering deals with purchase of petrol and diesel. Petrol pump owners of the state are offering air conditioners, washing machines, laptops and even bikes upon the purchase of fuel in order to keep the sale volume up.

According to a report in The Economic Times, MP has the highest Value Added Tax (VAT) on petrol and diesel, making its fuel prices among the costliest in the country. MP levies 27% VAT on petrol and 22% VAT on diesel. With the difference being so stark, commercial vehicles and truckers prefer filling their tanks from across the border.

Even locals are now following suit and skipping the nearby petrol pumps for the faraway one across the border.

Anuj Khandelwal, a petrol pump owner said that for purchase of 100 litres of diesel, a truck driver will receive free breakfast and tea, according to the daily. He added that they are also offering a mobile, a bicycle or a wrist watch for 5,000 litres, and an almirah, a sofa set or 100 gm silver coin for 15,000 litres. While on purchase of 25,000 litres of diesel the buyer can get an automatic washing machine, they can get a split AC or a laptop on purchase of 50,000 litres. Upon purchase of 1,00,000 litres they have offered a scooter or a motorcycle.  

Khandelwal said after the new offers, sale of fuel has soared. Drivers are purchasing 100 litres of fuel to avail the discounts and offers. Another petrol pump owner told the daily that fuel stations along the border are struggling due to the price differences that amount to as much as Rs 5 per litre.

Petrol pump owners have been demanding that the government reduce taxes on fuel.

(Edited by Anwesha Madhukalya)

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