Arora assures to take up issue of smuggling of petroleum products from neighbouring states

Ludhiana, August 29, 2023: Petroleum Dealers of Ludhiana and other parts of the state are facing various problems and to highlight these problems Petroleum Dealers Association Ludhiana and Petrol Pump Dealers Association Punjab jointly held a function here late last evening.

Sanjeev Arora, MP (Rajya Sabha) was specially invited at this event, to apprise him of the whole situation. The associations of Petroleum Dealers also presented their separate memorandum to Arora to consider their demands and take up them with appropriate authorities.

Arora was urged to take up with the Chief Minister Punjab Bhagwant Mann the VAT disparity in petrol and diesel with Chandigarh and other neighbouring states such as Himachal Pradesh & J&K. It was pointed out by representatives of petroleum dealers’ associations that they have already taken up the matter of reduction of VAT on petrol and diesel in Punjab with the chief minister’s office along with other grievances. 

It was urged upon Arora to take up long pending VAT issue with Chief Minister, Punjab to save livelihoods of dealers, especially for dealers in the border districts of Punjab. They pointed out that petrol and diesel and other petroleum products are being smuggled to Punjab from neighbouring states and Chandigarh due to disparity of VAT.  As a result, petroleum dealers of especially those locate in border districts are suffering huge financial losses. Arora assured to take up this matter to check this ongoing practice of smuggling.

Leaders of petroleum dealers’ associations said they have suggested that the E-Way Bill be made mandatory for vehicles carrying petrol and diesel to at least check smuggling into Punjab of these two products, as an interim measure till VAT is reduced on the same. They pointed out that the E-way Bill will also help curb smuggling of spurious products into Punjab. They apprised Arora about a circular of Government of Andhra Pradesh revoking of exemption to PSU Oil Marketing Companies on E-Way Bill to curb tax evasion.

Arora was also apprised that as per the government orders a new petrol pump cannot be opened if the road is not 60-ft wide. But, in many districts this order is being ignored by local authorities, resulting to which number of petrol pumps are increasing day-by-day and profit margin of pump dealers is coming down due to competition. Even many existing petrol pumps are being compelled to close down due to losses. Arora was urged upon to take up this matter with the state government to strictly follow all norms at the time of granting permission to open new petrol pumps.

Further, Arora was apprised that there is no increase in commission to petrol pump dealers for the last seven years whereas inflation has increased manifold. Arora was urged upon to take up this matter with the Ministry of Petroleum and Natural Gas, Govt of India. In reply, Arora assured to definitely take up this matter with the minister concerned. 

Arora was also apprised a matter related to the Ministry of Petroleum and Natural Gas, GoI with regard to abolition/relaxation in allotment of a site petrol pump dealerships / reconstitution of petrol pump dealerships within blood relationship. Arora assured to take up this matter with the concerned Ministry.

Among others, Petroleum Dealers’ Association Ludhiana president Ranjit Singh Gandhi and general secretary Manjeet Singh spoke on the occasion. Both are also office-bearers of Petrol Pump Dealers Association Punjab. In their address, they highly appreciated Arora for working hard in further improving infrastructure in Ludhiana and other parts of the state. 

Speaking on the occasion, Arora spoke in detail about various ongoing projects like under-construction Halwara Airport. He pointed out that better and increased infrastructure will lead to more business activities and transportation, thus, it will ultimately increase consumption of petroleum products such as petrol and diesel. As such, petrol pumps have better future in Punjab, he added.

Arora was also honoured on the occasion.