Petrol pumps strike on April 9

NEW DELHI: The Federation of All-India Petroleum Traders has announced a complete shutdown of all petrol pumps in the Capital on April 9 in protest against the Delhi Government's decision to hike VAT on diesel from 12.5 per cent to 20 per cent, which it termed as the highest in the country.

In a statement, Federation general secretary Ajay Bansal said nearly 400 petrol pumps affiliated to it would observe a complete shutdown.

“Tinkering with VAT”

He said the most disturbing aspect of the whole issue is that the Government has been tinkering with the VAT rate from time to time and there is no stability in the system.

In June 2008, Haryana reduced VAT on diesel to 8.8 per cent, the lowest in the country, leading to a drop in sale of diesel from pumps in Delhi. He said it was a wrong notion that an increase in VAT on diesel would lead to higher revenue as all the commercial vehicles plying on the national highways and passing through Delhi would prefer to get their diesel filled up in the neighbouring State where it is much cheaper.