LBT hits motorists as petrol, diesel become costly in city

SWITCHING OVER Petrol pump owners allege loss as people prefer buying fuel from neighbouring areas

CBD BELAPUR: With local body tax (LBT) being levied, the fuel price in Navi Mumbai – which was so far lower than the rates in Panvel and Mumbai – has gone up. As Panvel and Mumbai are yet to impose the tax, petrol pump owners and distributors are losing business to neighbouring areas.

Under LBT, the cess tax for fuel in Navi Mumbai has been hiked from 1 per cent to 3.5 per cent.

While petrol in Navi Mumbai is priced at Rs75.42 for a litre, it is available at Rs71.28 for a litre in Kharghar and Panvel. Diesel, which is being sold at Rs57.25 for a litre in Navi Mumbai, is available at Rs53.66 in Kharghar and Panvel.

The city has 28 petrol pumps. A delegation of petrol pump distributors recently met Thane guardian minister Ganesh Naik and NMMC commissioner Bhaskar Wankhede to appeal for reduction of tax. Naik has promised to take up the issue in the state Cabinet.

“Several transport companies and motorists have regular accounts with us. But, they are now switching over to petrol pumps in Kharghar and Panvel, as it saves them money. Also, the distance between Navi Mumbai and Kharghar is negligible,” said a dealer.

Jitendra Dubey, a petrol pump official, said, “Earlier, several motorists from Mumbai would fill up their vehicle tanks in Navi Mumbai on their way to Pune or Goa. It is not the case anymore.”

Mahesh Lal, a motorist, said, “A difference of Rs4-5 for a litre is huge. It amounts to Rs150 every time I fill up my fuel tank. Since I travel a lot to Panvel, I have prefer buying fuel from outside the NMMC area.”

According to sources, the sale of fuel in the city has gone down by around 3,000 litres daily.