New Delhi Oct 16 (KNN) Delhi Petrol Dealers Association (DPDA),  the apex body of petrol pump owners in the national capital is gearing up for protest closure of all fuel  pumps on October 22 in protest against Delhi government's refusal to reduce Value Added Tax (VAT) on diesel and petrol.

There are about 400 petrol pumps in Delhi which also have linked CNG pumps with them both will remain closed in protest from 6.00 AM onwards on October 22 and remain closed till 5.00 AM on October 23, 2018, said DPDA.

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, he added.

"Both Diesel and Petrol in Delhi has become expensive as the neighboring states have reduced VAT by Rs.2.5 per litre on petrol & diesel. In comparison to Delhi, petrol in UP and Haryana is cheaper by Rs 2.59 and Rs 1.95 per litre, respectively, while diesel in these two states is cheaper by Rs 2.02 and Rs 1.72 per litre, as on October 10. Because of high price in Delhi and low prices in states like UP and Haryana, customers are deserting the petrol pumps in Delhi leading to huge drop in sales, said Singhania.

Due to difference in prices there has been a sharp drop of 50% to 60 % in sale of diesel in Delhi and 25% in petrol in this quarter, he added.

He said that on October 22 all the 400 pumps of Delhi will neither purchase nor sell Petrol, Diesel & CNG in protest for reduction of VAT on Petrol & Diesel in Delhi This festival season is peak season for our sale due to social travelling by residents of Delhi.

Almost 200 pumps out of 400 pumps would be on a verge of closing down leading to retrenchment of thousands of workers affecting lakhs of people in the city, said Singhania.

Further he pointed that the purpose of much hyped  Graded Response Action Plan (GRAP) adopted in Delhi and introduced today  will be defeated if residents of Delhi keep buying much polluted Euro IV from fuel from neighboring states instead of cleaner an eco friendly Euro VI provided by Delhi fuel pumps.

Environment friendly Euro VI fuel is only available in NCT of Delhi. There is also an apprehension of interstate smuggling of inferior Euro IV fuel in the city. Emissions of Euro VI fuels are 80% less than the emissions of Euro IV fuels. Dealers would be forced to cut cost by reducing working hours due to loss of sales & revenue added Singhania.

In July 2015 & onwards, VAT on Petrol was increased from 20% to 27% & on Diesel from 12.5% to 16.75% in Delhi, claimed DPDA.

DPDA demands Reduction of VAT on petroleum products and encourage commuters to buy Euro VI fuel and save the livelihood of employees & owners of Petrol pumps of Delhi and also save state's revenue loss.