(FE)
Even as Haryana and Uttar Pradesh have recently reduced value-added taxes (VAT) on petrol and diesel, the Delhi government hasn’t; the city state’s stubborn refusal to take a cue from the Center (which cut excise by Rs 1.5/litre on October 4) is believed to have led to a sudden shift in fuel consumption to the two neighbouring states.
For every litre of petrol that consumers bought from the 18-odd company-owned-company-operated retail fuel outlets in Delhi on Monday (over 380 dealer-operated outlets remained closed as dealers went on a strike, protesting against the higher VAT), the state government got Rs 17.31 through VAT and for diesel, its VAT revenue was Rs 11/litre. In comparison, UP got Rs 14.52/litre from petrol and Rs 8.71/litre from diesel as VAT, and Haryana, Rs 15.10 and Rs 8.96, respectively. Before October 4, the VAT/litre across the three states were at par.
According to the Delhi Petrol Dealers Association (DPDA), since the VAT reductions were announced by UP and Haryana, Delhi’s diesel consumption declined by over 50% and sale of petrol by a quarter. FE could not independently verify these figures: OMCs are yet to come out with the post-VAT cut sales data.
