Fuel dealers in state go on strike from today

MUMBAI: More than 2,500 petro-product dealers in Maharashtra will go on an indefinite strike from Monday, protesting the state government’s failure to reduce sales tax. The Federation of All-Maharashtra Petrol Dealers Association (FAMPDA), which has given the strike call, said the petrol stations across the state will stop supplying fuel from Monday morning.

In Maharashtra, auto fuels attract a sales tax of 33%, one of the highest rates in India. The federation wants the rate to be reduced to 24%. Confirming the development, Girish Kamdar, a member of the petrol dealers association, said, “It’s almost two months since the government promised to reduce sales tax, which is among the highest in India. This is despite the assurances from petroleum minister Murli Deora, civil aviation minister Praful Patel and IOC chairman Sarthak Behuria. We are going for an indefinite strike from Monday morning.”

Mr Kamdar said, according to an internal report prepared by IOC based on the recommendations of the government, the state will not incur any major revenue loss even if the sales tax was reduced to 24%.

The federation pointed out that due to the high sales tax, truckers were filling fuel from neighbouring states like Gujarat and Goa just before entering the state, affecting volumes here. “Our throughput has declined to 100 kilolitres now from 400 kilolitres in 1998, when the sales tax was 20%,” Mr Kamdar said.