Smuggling of diesel from UP causing huge loss to Bihar coffers, dealers

Rampant smuggling of diesel from Uttar Pradesh (UP) is causing a huge loss to Bihar exchequer and hardship to authorised pump owners in the districts neighbouring UP, said people in the know.

Most of the companies in the state, involved in the construction of road, rail and other projects, are purchasing diesel from UP and bringing it illegally in unauthorized small tankers. This is causing the government loss of crores of rupees in Value Added Tax (VAT), they added.

The problem is compounded by smuggling of diesel from the neighbouring state for illegal retail sale to farmers and vehicle owners in remote areas.