Chandigarh, March 6: High taxes on petrol and diesel in Punjab compared to the neighbouring states have led to significant decline in its share in the sale of fossil fuel over the years, despite the fact that its per capita consumable goods consumption is highest.
According to the data, Punjab’s petrol market share fell to 24 per cent in 2017 compared to 39 per cent in 2000. As compared to Punjab, share of Rajasthan and Haryana increased significantly and touched 39 per cent and 26 per cent, respectively. Punjab sold 11.28 lakh kilolitres in 2017, while Rajasthan sold 18.17 lakh kilolitres and Haryana 12.22 lakh kilo litres of petrol.
Similarly, the diesel market share of Punjab came down to 23 per cent in 2017 from 30 per cent in 2000. While Haryana’s share increased from 27 per cent to 34 per cent during the same period. While, Rajasthan’s share in the diesel sales was almost the same at 35 per cent. The total quantity of diesel sold in Punjab in 2017 was 40.17 lakh kilolitres, Haryana 59.41 lakh kilolitres, Rajasthan 62.53 lakh kilolitres.
The VAT on petrol and diesel is highest in Punjab. It is 37.54 per cent on petrol and 17.78 per cent on diesel. While in case of Haryana and other adjoining states it is much lesser. Haryana charges 26.25 per cent VAT on petrol and 17.22 per cent on diesel.
The disparity in VAT in comparison to neighbouring Haryana, HP and Chandigarh is not only causing losses to the petrol pump dealers, but also to the state exchequer as customers in areas near neighbouring states prefer to buy fuel from there at cheaper rates.
Source Tribune India
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