Himachal Fuel Cess Faces Backlash from Petroleum Dealers
The Himachal Pradesh Petroleum Dealers Association criticized the state government's plan to impose a cess on petrol and diesel. They argue it will harm sales and push businesses to buy fuel from neighboring states, causing economic losses. The association plans to discuss the issue with the Chief Minister and Governor.
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The Himachal Pradesh Petroleum Dealers Association has condemned the government's decision to levy an additional cess on petrol and diesel, calling it 'unjustified' and warning of potential economic impacts. During a meeting, the association emphasized that this move could further erode fuel sales in the state.
Association President Sukumar Singh Chande highlighted that previously, when VAT rates in Himachal were lower than neighboring states, the total sales volume significantly dropped from 1.2 million kiloliters to 900,000 kiloliters by 2025. He warned that the new cess could lead to an even steeper decline in fuel sales.
The proposed 'Orphan and Widow' cess, passed by the State Assembly, would impose up to five rupees per liter on petrol and high-speed diesel. The association expressed concerns over the lack of clarity regarding the intended beneficiaries and utilization plans for the funds. Legal action is being considered if a resolution isn't reached through dialogue.
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