New Delhi, Oct 22 (KNN) Around 400 fuel stations in the national capital began a 24-hour shutdown today to press the Delhi government to slash value-added tax (VAT) on the key transport fuels to cut their losses.

Delhi Petrol Dealers Association (DPDA),  the apex body of petrol pump owners in capital, decided to close  all fuel pumps  including Compressed Natural Gas (CNG) for 24 hours in protest against Delhi government's refusal to reduce Value Added Tax (VAT)  on diesel and petrol will also adversely affect about 10 lakh CNG fitted vehicles in the capital.

Delhi Petrol Dealers Association (DPDA) President Nischal Singhania said, "The central government had slashed the rate of petrol and diesel by Rs 2.50 per litre each on September 4. This was followed by reduction of Value Added Tax (VAT) by various states including neighboring Haryana and Uttar Pradesh bringing relief to their residents. But Delhi government refused to reduce VAT on fuel both petrol and diesel resulting in fuel becoming more expensive than bordering Haryana and Uttar Pradesh."

Uttar Pradesh and Haryana, two states that share border with Delhi, were among those which reduced their states taxes on fuel.

But the Kejriwal government refused to reduce VAT on fuel both petrol and diesel.

As result, petrol and diesel became cheaper than Delhi in cities like Noida, Gurgaon and Ghaziabad.

DPDA said, "This has caused losses ranging between 20 per cent and 30 per cent, as commuters prefer to get their vehicle-fuel tanks filled at a fuel station in the neighboring cities like Noida, Gurgaon and Ghaziabad."