Uttar Pradesh - Petrol price hike: Traders' body
demands cut in VAT
Unhappy over the increase in price of petrol, the UP
Petrol Traders' Association (UPPTA) has urged the ruling
government to slash the rate of value added tax (VAT)
over petroleum products to give some relief to the
common man. Presently, the UP government charges 26.55%
VAT which is significantly higher than what some other
states are charging. Delhi and Haryana government levy
the lowest rate of VAT which is 20%. "If not at par with
these states, the UP government should bring the rate of
VAT down to some extent," said B N Shukla, president of
the association.
According to estimates prepared by UPPTA, the
price of petrol would go up by Rs 7.95 per litre inclusive of taxes. This means,
a litre of petrol would cost Rs 77.77 approximately against the old rate of Rs
69.82. If the rate of VAT in UP is brought at par with Delhi, the price of per
litre petrol could go down to Rs 73.14 per litre. The association clarified that
the price of petrol in premium category could not be ascertained exactly. The
reason: each company has a different rate for their premium brand. However, they
said that the premium petrol could cost anything around Rs 80 per litre.
The association has condemned the decision not only because of the hefty cost
involved. It doesn't agree with the logic given for the hike. "The petroleum
companies and the Union government said that the price is being increased
because of weakening of the rupee against dollar. But this logic is beyond my
understanding as the cost of crude petrol has gone down in the international
market which the decision makers should have taken into account," explained
Shukla. The petrol price hike was strongly condemned by people from all walks of
life in the city. "The historical rise surely owes its genesis to a hysterical
mind," said Priyam Agarwal, a hostel inmate who studies in a private coaching
institute in the city. "I get limited money from home and almost half of it is
fuel expenses. This is unfair," he claimed.
Equally disturbed was Pankaj Bajpai, a teacher. He said, "This immense hike
would increase my conveyance expenditure by at least 25% since the school I
teach in is 22 kilometres from my residence. I think I will have to seriously
think about a battery operated alternative or resort to public transport to save
money," he said. Aparna Singh who works in a government office bought a gearless
bike two year ago to save money. "Though I own a car, we use it occasionally to
keep expenditure on fuel under control. Now I feel that the purpose of buying a
two-wheeler stands defeated," said Aparna.
Hike in petrol prices alone doesn't bother people. It creates a ripple effect
that adds bit by bit to one's house-hold economy. "Each time petrol prices go
up, vendors start demanding for a hike in whatever they sell. For instance, the
milkman would increase per litre price of milk because his spending on commuting
has gone up. The vegetable vendor would rue that he is burdened with additional
expenditure on conveyance and compel us to pay more. And believe me, the
spending on vegetables has gone up drastically in the last few years," said
Moushumi Batabyal, a housewife.
Several people also offered a way out of the situation. "The hike has
underscored the need for improving the public transport system. Government
should seriously think over rolling out more CNG autos and busses," said Supriya
Mishra, a student. Businessman Rajiv Satija, in fact, urged the ruling
government to turn dream of a metro rail service into a reality.
Political parties and trader associations also condemned the decision and have
threatened to stage demonstrations against it. The Lucknow Udyog Vypaar Mandal
would stage a protest at the dharna sthal on Thursday.
Meanwhile, vehicle owners tried their last bit to save money. Scores of petrol
pumps witnessed a surge in the number of consumers till late night as the new
rates were to get effective from midnight. In some cities, petrol pump dealers
shut down their outlets to gain profits by selling price at higher rates. The
Bahraich and Lakhimpur Kheri administration launched a cracked down on such
dealers.