Petrol dealers call off strike

NEW DELHI: Fuel dealers in Maharashtra, who were on an indefinite strike since Sunday night seeking lower sales tax on auto fuel in the state, called off their stir on Tuesday after the petroleum ministry assured them of considering their demand. The strike was called off after the dealers’ representatives had a meeting with petroleum minister Murli Deora that lasted for more than an hour.

As many as 2,200 dealers in the state joined the strike in protest against the 33% sales tax on diesel in the state. The dealers said the high tax was leading to flight of high volume business to neighbouring states of Chhattisgarh, Goa and Andhra Pradesh.

Mr Deora said he had raised the issue with the Maharashtra government and also facilitated a meeting between the Federation of Maharashtra Petrol Dealers’ Association (FAMPEDA) representatives and the state finance minister. “I spoke to the chief minister late on Monday and he has agreed to look into the issue. The dealers will be meeting the state finance minister to discuss the matter,” Mr Deora said.

Tuesday’s meeting was also attended by civil aviation minister Praful Patel, whose party NCP is an ally of the state government.

A petrol dealers’ association (Mumbai) leader said the strike has been called off after the petroleum minister assured them of reviewing the high tax on auto fuel. “We have been assured by the minister and the matter will be resolved within a week’s time,” he said.

The sales tax in Maharashtra is one of the highest in the country leading to its fuel prices being Rs 4-5 higher per litre than anywhere else in India.