The Hindu Business Line : Petrol-pump dealers strike: Mumbaikars only partially hit

The strike was in protest against the high sales tax structure in Maharashtra, compared to other States. Though petrol-pump association representatives claimed that the strike was total, officials with the Maharashtra Government and the oil marketing companies said that only 23 per cent of the pumps were shut down.

Mumbai did not witness any panic buying by consumers, though the neighbouring Pune witnessed long queues on Sunday night, with consumers waiting to tank-up before the strike came into effect.

The Maharashtra Government has invoked the Essential Services Maintenance Act (ESMA) from September 15 to handle contingencies arising from the strike, Government officials said.

The sales tax in Mumbai is 33 per cent plus Rs 1 surcharge per litre of diesel, while in the rest of the State it is 30 per cent plus Rs 1 surcharge. In the case of petrol, it is 28 per cent plus Rs 1 surcharge in Mumbai, while in the remaining parts of the State it is 27 per cent plus Rs 1 surcharge.

Speaking to Business Line, Mr Ravi Shinde, President, Federation of All Maharashtra Petrol Dealers Association, said that the strike was total and added that their association has not received any call from the State Government to withdraw the strike.

Sales tax in Maharashtra is the highest in the country at 34 per cent compared to neighbouring States of Goa, Andhra Pradesh, Gujarat, Madhya Pardesh and Karnataka. This lack of parity has led to huge volume of diesel business moving away from Maharashtra to the neighbouring States, he said.

"We want the sales tax to be on par with all the five neighbouring States. They have sales tax on motor sprits in the range of 21 to 27 per cent" Mr Shinde said.

Addressing the media at the Secretariat on Monday, Mr K.P. Bakshi, Maharashtra's Secretary for Food and Civil Supplies, said that out of the total 2,774 pumps, nearly 2,134 (77 per cent) were open during day on strike. In addition, 25 to 28 per cent of the pump owners have also purchased petrol and diesel from oil depots today, he said. About 166 pumps owned and operated by the oil companies were also opened during the day. Apart from these, 42 ad hoc pumps have been pressed into service, he said.

In Mumbai and surrounding areas 38 pumps are owned and operated by oil companies and 12 pumps are functioning on ad hoc basis. Of the 112 CNG vending outlets, 48 are operational and 64 shut.

Mr B.C. Khatua, Maharashtra's Commissioner of Sales Tax, said the Government agrees that Maharashtra has high sales tax especially on diesel. The Chief Minster had met the petroleum dealers in February and the issues were settled.

"The Government fails to understand why they are going on strike. Even if we reduce the sales tax by one per cent, then the State will incur a loss of Rs 180 crore. We cannot take that kind of hit in sales tax," he said.

But Mr Ratan Panda, State Coordinator Oil Industry, Maharashtra, warned that although consumers got their stocks today, the situation was dynamic and could change tomorrow as the present inventory with pumps will get exhausted.

More Stories on : Petroleum | Trade & Labour Unions | Maharashtra

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