700 petrol pumps on state border see 50% dip in sales

Varinder Singh

Tribune News Service

Chandigarh, March 21

More than 700 petrol pumps on the state’s border with Haryana and Himachal Pradesh are experiencing a 50 per cent dip in the sale of petrol and diesel. This is due to widening gap between the prices of the two petroleum products in Punjab; Haryana and Himachal Pradesh.

The sale of petrol and diesel has started shifting to Haryana due to the withdrawal of the State Specific Cost on crude oil by Haryana and certain other neighbouring states.

Petrol prices were already highest in Punjab as compared to neighbouring states mainly due to the levying of the ‘highest’ 34.5 per cent VAT and also other taxes.

Another thing adding to the rate was the state-run oil companies’ decision to retain the Panipat refinery base price instead of linking the base price of petroleum products with the Bathinda oil refinery.

Punjab has 3,268 petrol pumps of which more than 700 are operating in the state ‘border belt’ districts of Sangrur, Patiala, Bathinda, Mohali, Ropar and Hoshiarpur.

Though almost all petrol pumps of the state have registered a decline but the worst affected are the ones which are situated at the border of Haryana and Himachal Pradesh.

“These pumps have witnessed a decline of sales by at least 50 per cent since March 10 due to the withdrawal of the State Specific Cost on crude oil by Haryana and other states. The difference between the diesel price in Punjab compared to Haryana and Himachal Pradesh has gone up from 20-30 paisa per litre to about Re 1 per litre in about 10 days. Petrol prices were already the highest in Punjab,” said Punjab Petroleum Dealers’ Association president Sandip Sehgal.

Nitin Goyal, the treasurer of the association, said that the owners of the pumps in the border belt would have no alternative but to shut down their establishments if the state government allows this situation to continue.

“The Bathinda refinery has been in operation for the past three years but the oil base price continues to be linked with the Panipat refinery. There can be a decline in the cost of petrol and diesel between 80 paisa and Re 1 per litre if the crude oil base price is linked with Bathinda refinery, mainly due to the advanced technology in the new refinery and the tax benefits available to new ventures,” suggested Sandip Sehgal.

He said petro dealers had taken up the issue with Deputy Chief Minister Sukhbir Singh Badal through SAD MLA Deep Malhotra.