VAT hike: At ₹74.02 per litre, diesel rate reaches all-time high in Mohali

MOHALI: With diesel rates touching an all-time high of ₹74.02 per litre in Mohali on Thursday, after a hike on the 18th consecutive day, petrol pump owners in the district were hit hard as their sales dipped due to lower rates in the adjoining cities of Chandigarh and Panchkula.

The rate of diesel in Chandigarh was ₹71.34 per litre while in Panchkula, it was ₹72.02.

The petrol rate was ₹81.69 per litre in Mohali, ₹77.14 per litre in Chandigarh and ₹77.81 per litre in Panchkula.The effective value added tax, including cess, is 33.40% in Mohali, while in Chandigarh, it is 22.45% with no additional cess. In Panchkula, the VAT is 26.25%.

DEALERS SEEK UNIFORM RATES IN TRICITY

Mohali district petroleum dealers association president Ashwinder Singh Mongia said, “Due to the difference in fuel rates, we have lost about 80% of our business. Dealers whose pumps are on the UT-Punjab border are the worst hit as due to availability of cheaper fuel just 2-3km away, people don’t go to them.”

“When authorities can bring parity in liquor rates, why can’t they bring uniformity in fuel rates,” he asked.

A petrol pump owner in Mohali, on the condition of anonymity, said, “Even in the national capital region, there is a fuel rate difference of just 25 paisa, despite the area being heavily populated and having a huge geographical area, including parts of Haryana and Uttar Pradesh.”

UT adviser Manoj Parida said, “Instead of asking us to increase VAT, dealers should ask Punjab and Haryana governments to slash the rates. We follow the instructions of the government of India and our motive is to benefit the consumers. We had recently increased the VAT to 22.45%.”

Dealers in Mohali and Panchkula

also resent the Chandigarh petrol pump owners for putting up boards and hoardings advertising the cheaper rates.

They claim that the boards are illegal and questioned why the Chandigarh administration, which is usually very strict, has allowed such boards to stand.

A senior official of the Punjab excise and taxation department said, “Since Mohali is part of Punjab, we cannot differentiate rates here from the rest of the state. Efforts were made, but still there is no parity in fuel prices. This is due to the different policies of the state and UT administration.”

SALES DROP IN MOHALI

As per the record of Mohali district petroleum dealers association, sales in Mohali has dropped 42% from 15,000 kl per month in August 2016 to 9,200 kl in March 2020. In the corresponding period, Chandigarh doubled its diesel sale to 18,180kl from 8,883kl per month. In Panchkula, sales have dipped 40% from 10,000 litres per day per petrol pump in 2016 to 6,000 litres per day in 2020.

DEALERS, ESPECIALLY THOSE CLOSE TO UT-PUNJAB BORDER, LOSE BUSINESS DUE TO AVAILABILITY OF CHEAPER FUEL IN CHANDIGARH AND PANCHKULA