(MENAFN- KNN India) Fuel pump owners in the country have demanded ‘one nation one rate"; for petroleum products in order to eliminate disparity in prevailing prices of petrol and diesel.
Talking to KNN, the President of Punjab Petroleum Dealers Association, Sandeep Sehgal, said that state taxes are the major factors under the petroleum products which leads to rate difference in each state and under this Value Added Tax (VAT) is a major factor which is in state control. So we are trying to convince the government to take petroleum products under the Goods and Services Tax (GST) so that petrol diesel rate would become same in all over India.”
'But the states are reluctant because they are feeling unsecured as liquor and petroleum products are major source of revenue generation for them. They want to control this to fulfil their revenue need,” he said.
He further said, 'We have started a National campaign under the national body All India Petroleum Dealers Association ‘One Nation One Rate";.”
President further pointed that, 'Freight is the major factor if we see from the consumer angle for any price. Diesel is major factor in freight where they calculate the highest rate of diesel to generate freight bill. They buy the diesel from the state where it is cheaper. Border areas pumps are on verge of closure where taxes are huge. Smuggling happens where rates are less. These are factors which are related to this whole scenario.”
The association, which claims to be a national body representing more than 52,000 petrol pumps in the country, has been holding meeting with chief ministers and state finance ministers to convince them to bring parity in retail price of petroleum products.
'Our National President Ajay Bansal has met several chief ministers. The states want to do it but they are concerned about their revenues,” he added.
However, he revealed that the body is about to meet the finance minister to convince him to bring petroleum products under the GST. In case they don";t bring this under GST then they have to come up with a formula where VAT would be same for each state with the consensus of states.
The association said it would go on short strike from 31st December to lodge their protest if government fails to look after the matter. (KNN Bureau)