India: 2,300 gas stations go on indefinite strike over new diesel tax

An indefinite strike by operators in India's Haryana region has left over 2,300 gas stations closed down since Monday morning, leaving motorists in despair, reports Business Today.

The 2,300 retailers are on indefinite strike in protest at the recent VAT (value added tax) increase on diesel fuel, implemented by the Haryana government.

Only a hand-full of gas stations, directly owned by oil companies themselves or by state government agencies, were supplying fuel to drivers - many in desperation.

"All petrol pump dealers have gone on strike from today (Monday). We had announced the strike on July 17 but the government did not listen to our demands. Our strike is indefinite," said Palwinder Singh Oberoi, senior Vice President of the Haryana Petroleum Dealers Association.

According to Mr Oberoi, the new increase in VAT, which matches the same tax rate implementation imposed by neighbouring northern states such as Punjab, will see gas station operators face losses. Retailers demand a diesel tax 1-2 per cent lower than rates in states around them.

Haryana´s government has raised diesel fuel VAT to 16.4 per cent, while dealers have been demanding the removal of a 5 per cent surcharge in the tax.

The state of Haryana, situated in North India, has an estimated population of around 26 million and is considered one of the wealthiest states in the country.

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