Business

Demanding Inclusion Under GST, Petrol Pump Owners Call For Nationwide Strike

News World India | 1
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| October 8 , 2017 , 12:38 IST

At a time when most industries are feeling burdened by the implementation of the Goods and Services Tax (GST), Petrol Pump owners have demanded inclusion of petroleum products under the GST.

The United Petroleum Front (UPF), which represents more than 54,000 dealers from the Federation of All-India Petroleum Traders, the All-India Petroleum Dealers Association and the Consortium of Indian Petroleum Dealers announced a nation-wide strike of dealers on October 13.

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According to reports, the UPF has put forth several demands including an upward revision of dealer better margins, the inclusion of petroleum products under GST, better terms of return on investment, resolution of manpower issues, resolution of issues relating to transportation and a fresh study of handling losses.

The UPF has warned that if their demands are not met at the earliest, fuel dealers will stop indefinitely the purchase and sale of petroleum products from October 27.

Several of the demands have been pending despite state-run oil marketing companies (OMCs) signing an agreement in last November. The front said that even a letter from the Cabinet Secretariat on June 28 did not result in a positive response.

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The petroleum dealers are also reportedly upset with the marketing discipline guidelines issued by OMCs which penalises dealers for shortcomings up to Rs 2 lakh as per a zero-tolerance policy towards shortchanging of customers. They also spoke out against the daily price mechanism introduced from July 1 which resulted in petrol and diesel prices fluctuating on a daily basis, saying that the policy benefits neither the consumers nor the dealers.

The dealers are also against the government's proposal to allow home delivery of oil products, citing safety concerns.