Maximum tax on petrol is levied by Tamil Nadu and Goa imposes lowest, says Ajay Bansal

Chandigarh, July 13:  Fuel pump owners in the country have demanded ‘one nation one rate’ for petroleum products. this will eliminate disparity in prevailing prices of petrol and diesel. Maximum tax on petrol is levied by Tamil Nadu state. While Goa gives the lowest rate of tax.

“We are demanding ‘one nation one rate’ for fuel.  So there should be no disparity in prices of petrol and diesel in the states. This step will help in controlling prices of this essential commodity. All India Petroleum Dealers Association President Ajay Bansal said here on Tuesday.

He added that because of different VAT rates prevailing in states, there was a disparity in fuel prices. This vary between 60 paise and Rs 4 per litre in case of diesel and Rs 1 to Rs 7.50 per litre for petrol.

Certain facts on fuel price

Ajay Bansal said maximum tax on petrol is levied by Tamil Nadu state, which is about 35 per cent. While Goa imposes lowest rate of tax on the commodity.

In case of diesel, Haryana charges lowest tax while states like Rajasthan and West Bengal levy 20-24 per cent tax which is in higher tax slab, he said.

“We want the prices of fuel which is an essential commodity should be same throughout the country. The states should build consensus on the same,” he said.

The association, has been holding meeting with chief ministers and state finance ministers to convince them. their need is to bring parity in retail price of petroleum products.

Bansal said, “we also demand that petroleum products be brought under GST. This ensure one nation one rate.” But, he said, states are unlikely to agree on the same.

A delegation led by Bansal today met Punjab Finance Minister Parminder Singh Dhindsa in this regard and sought support.

Bansal said Dhindsa had assured the delegation to consider their demand to lower tax rate.

Because of high tax rate on petrol in Punjab, prices of fuel in the state is costlier by Rs 6 per litre when compared to Chandigarh.

“Uniformity in VAT rates will lead to cheaper petroleum products.  Growth in tax revenue also follws. It will lead to a hike sale in pumps located at the border areas which are now on the verge of closure due to high tax rates. Said Punjab Petroleum Dealers Association President Sandeep Sehgal.

Dealers also expressed concern over the looting incidents at petrol pumps. they also demanded adequate security to prevent any such incidents in future.