Home»Punjab»Fuel Pump Owners Demand Removal Of Octroi On Diesel, Petrol

Fuel pump owners demand removal of octroi on diesel, petrol

PTI   |  Mar 21, 2012, 17:06PM IST

Chandigarh: Punjab fuel outlet owners have asked the newly formed SAD-BJP government to honour its "promise" by abolishing octroi on petrol and diesel which was announced before the Assembly elections.

"We want now from the Punjab government to fulfill its promise which was announced before the elections by abolishing octroi on fuel," Punjab Petroleum Dealers’ Association President J P Khanna said.

In December last year, the Punjab government had decided to abolish octroi on fuel within the municipal limits of towns and cities across the state with an immediate effect, just a few hours before the Election Commission announced the January 30 election date for state’s 117 assembly seats.

The abolition of octroi on fuel would have led to petrol and diesel getting cheaper by 75 paise and 85 paise per litre, respectively, within cities, fuel dealers claimed. However, the Election Commission rejected the state government’s decision of abolishing octroi on petrol and diesel on December 27, saying that "the government straight away passed an order without following due procedure and necessary amendment in law”.

The SAD-BJP government returned to power marking an historic win in the state.

Punjab levies 1 per cent and 2 per cent octroi on total value of petrol and diesel respectively and total collection from octroi stands at Rs 40-42 crore per annum, he claimed. "Punjab is the only state in the country which imposes octroi on fuel. You will never find such kind of levy anywhere in the country," he said.

Khanna said he met Punjab Minister for Local Government Bhagat Chunni Lal last week and demanded from him to honour the promise made before the elections.

Notably, BJP Punjab had promised to do away with octroi on petrol and diesel in its election manifesto. Petroleum dealers said that the abolition of octroi would bring major relief to consumers living in cities and it would also contain the practice of "smuggling" of fuel from rural areas to urban ones.

"We have always been demanding from Punjab government to do away with octroi on fuel as it was having a cascading affect on consumers because it was leading to double taxation on usage of petrol and diesel," he said.

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