Petrol pumps to remain 'dry,' govt not to cut rates

About 2,200 petrol pumps in Maharashtra went on an indefinite strike from early Monday morning even as the Maharashtra government ruled out any compromise with the striking dealers on the sales tax issue stating that the Essential Commodities Act had been invoked since Friday and a contingency plan was in place to meet any shortage of fuel.

The petrol pump dealers, led by Federation of All Maharashtra Petrol Dealers, maintained that they would keep the 'dry' outlets open since its members are 'unable to purchase fuel for want of money.'

While the government claimed that till 3 pm, about 77 per cent of the 2,774 petrol pumps in the state were open even as FEMPEDA maintained the strike was near total.

"We have issued an order on Friday itself stating that any action to obstruct purchase, distribution and transport of petroleum products would be a criminal offence under the Essential Commodities Act. We have also made contingency plans to counter any shortage in fuels," secretary, food and civil supplies, K P Bakshi told reporters in Mumbai.

"As of 3 pm, 77 per cent of the 2,774 petrol pumps in the state were running. However, we expect the number to increase by Tuesday as some of companies have not purchased since last (Sunday) night," Bakshi added.

The government, however, ruled out any compromise on the matter, saying unless other states brought the sales tax down to 20 per cent as agreed in 2000, it would be impossible for Maharashtra to reduce tax on fuels.

"The government is in a no win situation. If we reduce the tax even by a per cent, we face a loss of almost Rs 180 crore (Rs 1.80 billion) per day. States like Punjab have a 8 per cent tax on diesel, which we cannot compete with. All states have to agree on making it 20 per cent sales tax for fuel, only then can Maharashtra reduce its sales tax," B C Khatua said.

Bakshi said 166 company-owned and company-operated (COCOs) petrol outlets, 30 out which are located in Mumbai, in addition to the 42 ad-hoc dealerships would remain open.

The government has sought the permission of petroleum ministry to allow the 619 consumer petrol pump, which are run by state and central government agencies to service their vehicles, to sell fuel to the general public.

Usually everyday 30-35 fuel tank lorries are loaded from the godowns, but on Monday only 8-12 were loaded, Ratan Panda, liason officer for the four oil companies, said.

Hindustan Petroleum Corporation Ltd has placed only 95 indents against an average of 313, while Indian Oil Corporation has placed 41 indents against 873, IBP has placed 23 against 202 indents and in Mumbai, BPCL has placed 35 indents as against 104.

Sales Tax Commissioner B C Khatua said the demand for reduction in sales tax was uncalled for when the state government has already fulfilled its undertaking made to the dealers in February.

"In accordance with the assurance given by the chief minister, the state has forgone an additional revenue of Rs 3,500 crore (Rs 35 billion), which it would have accrued due to the increase in fuel prices effected on June 16, 2006," he said.

Earlier, petrol pump dealers across Maharashtra launched an indefinite strike from early Monday morning to protest against high sales tax levied by the state on auto fuel, which was driving business to other states.

"The strike is total," Federation of All Maharashtra Petrol Dealers' Association President Ravi Shindhe claimed and added the trade body had not received any call from the government to withdraw the strike. He said company-owned-company-operated pumps are, however, operating in the state.

Sales tax in Maharashtra is the highest in the country at 34 per cent compared to neighbouring states of Goa (21 per cent), Andhra Pradesh (28), Gujarat (28) and Karnataka (30).

The disparity was leading to flight of high volume of diesel trade from Maharashtra to the neighbouring states, Fampeda claimed.

Maharashtra: State-wide petrol pump strike from midnight

Fampeda General Secretary Uday Lodh said repeated missives to draw the government's attention went in vain and as a result the dealers had no other alternative but to go on an indefinite strike.

In Nagpur, only nine petrol pumps operated by Indian Oil Corporation and Bharat Petroleum Corporation Limited were open while in rural areas Reliance petrol pumps were open, official sources said.

In Nasik, 180 petrol pumps participated in the indefinite strike, according to Suresh Garje of Nasik District Petrol Dealers' Association.

During the strike 2,200 members of Fampeda will stop buying and stocking fuel, he added. PTI

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