Petrol pump dealers call for nationwide strike on Oct 13, to press for fuel under GST


Mumbai, Oct 7 (PTI): United Petroleum Front (UPF) on Saturday announced nationwide strike of dealers on October 13 to press for various demands including better margins and inclusion of petroleum products in the Goods and Services Tax.

It warned that if the demands were not met at the earliest, fuel dealers will be forced to stop, indefinitely, purchase and sale operations from October 27.

UPF represents over 54,000 dealers from the Federation of All-India Petroleum Traders, the All-India Petroleum Dealers Association and the Consortium of Indian Petroleum Dealers.

The strike is to press for long-pending demands ignored by the state-run oil marketing companies (OMCs) since an agreement was signed last November, it said.

The demands include upward revision of the dealer margins every six months, better terms for return on investment, resolution of manpower issues, a fresh study of handling losses, and resolution of issues related to transportation and ethanol blending.

The front alleged that the letters which it wrote to oil marketing companies as well as a letter from the Cabinet Secretariat dated June 28, did not elicit positive response.

Dealers also want the government to bring petrol and diesel under the GST regime.

They are also upset with the marketing discipline guidelines announced by OMCs, which seek to penalise dealers for shortcomings up to Rs. 2 lakh under a zero tolerance policy towards shortchanging of customers.

Fuel dealers are also opposed to the daily price mechanism introduced from July 1, saying it has benefited neither the consumers nor the dealers.

They are also against, citing safety concerns, a proposal of the government to allow home delivery of oil products.

  

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Comment on this article

  • SMR, Karkala

    Mon, Oct 09 2017

    Taxes currently constitute 45%-52% of the retail price of auto fuels in India, far higher than what would it be if petrol and diesel was brought under the Goods and Services Tax regime.
    While international prices have fallen sharply from an annual average of $105 per barrel in 2013-14 to $46 per barrel in 2015-16 and 2016-17, the Centre has hiked excise duties on petrol and diesel over nine times.
    Retail prices in India and select countries as on September 1, 2017 (Rs/litre)

    Country Petrol Diesel
    India 69.26 57.13
    Pakistan 42.14 46.93
    Sri Lanka 53.47 39.69
    Nepal 61.24 46.24
    Bhutan 62.21 56.05
    Bangladesh 69.91 51.05
    Malaysia 32.19 31.59
    Indonesia 40.58 43.36
    The NDA government hiked excise duty on auto fuels by nine times in 2014-15 and 2015-16. Excise duty on petrol and diesel was Rs 9.48 and Rs 3.56 a litre respectively before the NDA government took office. However, through repeated hikes, it has jacked up duty to Rs 21.48 and Rs 17.33 a litre, an increase of 226% and 486% respectively over the May 2014 level.
    The narrative that each state government gets 42% of the excise duty collected by the Central government is not true. The entire 42% of excise duty to a single state, is misleading. For example, Karnataka receives 4.713% of this total 42%.
    Excise duties annually raised from the petroleum sector increased from Rs 77,982 crore in 2013-14 to Rs 2,42,691 crore in 2016-17. Annual revenues from excise duties grew at 27% in 2014-15, 80% in 2015-16 and 36% in 2016-17, rising from 0.7% of GDP in 2013-14 to 1.6% of GDP in 2016-17. This substantial additional revenue mobilisation has enabled the Centre to balance its budget without making much effort to raise direct taxes.
    The economic logic was that market forces should determine fuel prices and not the government. But the NDA government has taken away benefits of low oil prices from consumers, acting against the very logic propounded for the deregulation of the retail auto fuel market.
    Jai Hind

    DisAgree [1] Agree [4] Reply Report Abuse

  • Daniel, Mangalore

    Sun, Oct 08 2017

    ...,good but see doesn't get under Gujarath Supply Tax!!!!

    DisAgree Agree [7] Reply Report Abuse

  • Peter, Bangalore

    Sun, Oct 08 2017

    if fuel under GST, then what about fekunomics and our GDP?

    DisAgree Agree [8] Reply Report Abuse

  • Simon, Mangalore

    Sun, Oct 08 2017

    It is so hard to believe a single world uttered by this current government at the center. If they are so sincere let them bring everything under GST and not simply using as per their convenience. Let them prove who thief and who is not. People are utterly fed-up hearing hollow exaggerated slogans.

    DisAgree Agree [19] Reply Report Abuse

  • Kiran D Souza, Mangalore

    Sun, Oct 08 2017

    Why Petrol pump dealers should protest? Petrol Pump, Liquor, Gas cylinder business is a no loss business in this country.
    Petrol pumps cheat the customers day in & out, earn huge profits, their protest is just a eye wash for the public.
    If you buy INR 100 Petrol, you get only INR 75-80 petrol. This was a major news all over India some two months back how they cheat the customers by installing Electronic chips to cheat.
    Actually their protest is against the government order that Fuel will be delivered to the customers at their doorstep by the Private entities.
    They are worried about this & they are not fighting for GST or anything else.

    DisAgree [4] Agree [9] Reply Report Abuse

  • G M Hegde, Udupi

    Sun, Oct 08 2017

    Central govt. from day 1 is trying to get petroleum products under GST but State govts including Karnataka dont want to give up their cash cows of Petroleum and Alcohol, in fact only after this the opposition relented for GST bill

    DisAgree [28] Agree [8] Reply Report Abuse

  • NISHAR, Mangalore / KUWAIT

    Sun, Oct 08 2017

    Great news... lets unite...lets fight against FEKUGIRI. We support this protest.

    DisAgree [5] Agree [32] Reply Report Abuse

  • Karthik Karkera, Maryhill Mangalore

    Sun, Oct 08 2017

    I support this demand, state governments should decide in favour of this in the next GST council meeting, Centre has already agreed.

    DisAgree [16] Agree [14] Reply Report Abuse

  • G R PRABHUJI, Mangalore

    Sun, Oct 08 2017

    It seems that Petrol delears are intelligent than our Govt.

    DisAgree [1] Agree [32] Reply Report Abuse

  • Ahmed K. C., Mangalore

    Sun, Oct 08 2017

    We are actually tired of these bundh and strikes. But, we support totally to this move of petrol pump dealers to bring fuel under GST.
    I am wondering Govt may bring fuel under GST but, with new slab of 60 % GST.

    DisAgree [1] Agree [25] Reply Report Abuse

  • mahesh, Mangalore

    Sun, Oct 08 2017

    Why isn't siddu reducing Karnataka petrol tax of 30 rupees per litre?

    DisAgree [30] Agree [6] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Oct 08 2017

    I fully support this nationwide strike ...

    DisAgree Agree [33] Reply Report Abuse

  • Pinto, BLR

    Sun, Oct 08 2017

    Don't day dream that by bringing fuel under GST government will give it you at cheaper rates compared to UPA times. There is huge petroleum lobby with producers, agents, dealers, industrialists & government over hidden benefits & kickbacks for each.

    We are not bothered about VAT/GAAT/GEET/GST. Give us fuel at rates comparable to what UPA used to give when crude price was at 147 USD per barrel. Now it is below 50 USD per barrel. Reduce prices accordingly including USDINR exchange rate. Surely pricing declines to 1/3rd of current price.

    Can the government supply at these rates ? If not please allow each state to import fuel directly & distribute. You will definitely see the price difference. Also, just compare our neighbouring poor countries prices & ours !!!

    Bharat Maata Ki Jai ... Let the truth prevail ...

    DisAgree Agree [14] Reply Report Abuse

  • NAGESH NAYAK, Mangalore

    Sat, Oct 07 2017

    MODIJI LET THEM PROTEST, WHEN PSEUDOS GETS HUNGRY, THEY WILL OPEN THEIR SHOPS

    DisAgree [32] Agree [3] Reply Report Abuse

  • Swamy, Mangalore

    Sat, Oct 07 2017

    Do you think that Demonetisation, GST, raids by CBI, IT, ED are for the benefit of consumers or dealers or comman man??????....BJP will pick and choose which is safe and profitable.

    DisAgree [2] Agree [15] Reply Report Abuse

  • Rob Stan, Udupi / US

    Sat, Oct 07 2017

    At the end I feel the petrol pump dealers would agree for increase in their margin & whatever benefits them and let go demand for them to be included under GST. GST must be only for the sake of bargain.

    DisAgree Agree [8] Reply Report Abuse

  • Imtiaz Ahmed, Mangalore

    Sat, Oct 07 2017

    This is a good move in the right direction.

    DisAgree Agree [35] Reply Report Abuse

  • pnto, mglr

    Sat, Oct 07 2017

    need of the hour to save common man. close it indefinatly till it is given public will cooprate. but let Mr. Alphonso pay the present price

    DisAgree [2] Agree [23] Reply Report Abuse

  • Valerian Dsouza, Udupi/Mumbai

    Sat, Oct 07 2017

    I sincerely appreciate Petrol pump dealers press for fuel under GST.
    If Petrol and Diesel still under VAT / Sales Tax, is it making any sense, subsuming all other taxes under GST and excluding Petrol and Diesel ?
    They require 2 registrations, 1 for VAT and 1 for GST for dealing in other products/services and both compliances. They are not getting ITC of VAT paid.
    Definitely, their demand for fuel under GST is right.
    Even people also want fuel is subsumed under GST to get the exorbitant rates reduced and to get ITC for consumption of fuel in business.

    DisAgree Agree [23] Reply Report Abuse


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Title: Petrol pump dealers call for nationwide strike on Oct 13, to press for fuel under GST



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