Federation of All Maharashtra Petrol Dealers' Association (FAMPEDA) has called indefinite strike in the state starting 26th August. The association is seeking uniformity on petrol and diesel prices along with reduction in Local Body Tax (LBT) to 0.1%. Around 4,660 petrol pumps located across the state shall remain closed for an indefinite period.
Earlier this month, dealers had organized a day-long protest strike to grab government's attention to the issue. But back then negotiations with the government could not reach a decision. Uday Lodh, president of FAMPEDA has reportedly made several futile attempts to engage in a formal conversation with Deputy Chief Minister, Ajit Pawar and Chief Minister, Prithviraj Chavan on 20th and 21st August. Lodh added, “We are open for discussion, but it seems that the government is playing down the demand and compelling us to go on strike.”
Dealers have been long complaining about loosing sales due to Value Added Tax (VAT), Octroi, Local Body Tax (LBT) and State Specific Charge (SSC). Currently, the state government collects about 21% of VAT on diesel. Lodh said, “We want the government to announce at least 3% cut in VAT on diesel with immediate effect. This will provide a much-needed relief to the dealers.” Currently, the government collects a mere 0.1% LBT on gold ornaments whereas its collects about 2 - 5% in case of petrol and diesel. Lodh added, “It is injustice on the citizens as they spend more on petrol and diesel than gold.”
Federation of All Maharashtra Petrol Dealers' Association (FAMPEDA) said that if this protest works out well, petrol and diesel prices may come down by Rs. 5 to Rs. 6 per liter in the state. This would indeed be beneficial for generating state government’s revenue, end user and the petrol pump dealers in the state.
