Petrol sales decline in Delhi as fuel becomes cheaper in UP, Haryana

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Sales of petrol in Delhi slumped by a quarter as hordes vehicle owners and daily commuters riding into the capital from adjacent townships started flocking outlets in Uttar Pradesh (UP) and Haryana, owing to the reduction in Value Added Tax (VAT), the Times Of India reported on Friday.

Petrol in UP and Haryana became cheaper by more than Rs 8 per litre as the Arvind Kejiriwal government is yet to reduce VAT. This has resulted in a dramatic 25% fall in sales at Delhi’s 403 petrol pumps located on or near the border in particular.

After the centre cut excise duty on petrol by Rs 5 and diesel by Rs 10 per litre, the governments of UP and Haryana reduced VAT to bring down the price of each fuel by Rs 12 per litre.

Diesel price low in Delhi

In UP petrol is now Rs 8.86 per litre cheaper than Delhi as against Rs 3.36 a litre earlier. Petrol in Haryana costs Rs 8.22 a litre cheaper than Delhi as compared to Rs 2.43. However diesel still remains cheaper by 8 paise per litre in Delhi than UP against 49 paise earlier and 39 paise compared to 8 paise before.

Owing to the smaller price differential, it does not come as a surprise that petrol sales in Delhi have dropped to 2,170 kilolitres, while the slump in diesel sales was much lower at about 8-9% to 1,740 kilolitres.

Dealers said they have appealed to the Chief Minister of Delhi to reduce VAT as the loss of sales will also reduce the revenue collection of the state.