Fuel stations across Rajasthan will be closed on September 13 and 14, as the Rajasthan Petroleum Dealers Association (RPDA) called for a strike to protest against the high value-added tax (VAT) rates. Rajendra Singh Bhati, the state president of RPDA, has also warned that if the state government does not reduce these tax rates, an indefinite strike will commence on September 15.
More than 5,700 privately operated fuel pumps across the state are participating in the strike.
Compared to neighbouring states like Punjab, Haryana, Uttar Pradesh, Delhi, and Gujarat, VAT rates on petrol and diesel in Rajasthan are the highest, even after a reduction last year, according to a report by the Times of India. In Rajasthan, residents pay as much as 20 per cent of their auto fuel costs as VAT.
Former RPDA president Suneet Bagai emphasised that they had requested the government to lower VAT and road cess two weeks ago to ease the burden on both consumers and dealers.
The report added that these steep prices highly affect fuel stations near the state borders, as vehicle owners opt to purchase fuel in neighbouring states where prices are considerably lower. Some petrol pumps in border areas have already closed due to a steady customer decline.
Bagai pointed out that diesel prices in neighbouring states are Rs 10-11 cheaper, while petrol is Rs 15 less expensive. This price gap encourages people to buy fuel outside Rajasthan, leading to financial losses for local businesses. Despite the Ashok Gehlot-led government’s inflation relief efforts, high fuel prices continue to drive up the costs of goods, commodities, and services.
Some states, like Maharashtra, have implemented a dual tax system to offset rate differences in border areas. In the past, RPDA members with fuel stations in border districts have called for a similar mechanism in Rajasthan.
The news comes before the Rajasthan state assembly elections slated for the end of the year or early 2024.
