Petrol pumps in the city are likely to go dry soon as dealers have decided not to buy fresh stock to protest high sales tax levied by the state government."We will stick to our no-purchase decision," Ravi Shinde, president, Federation of All Maharashtra Petrol Dealers' Association told PTI.
About 2,700 petrol pumps in the city would sell as long as the stock lasts, he said, adding that there had been no intimation on the part of the government so far.
Sales Tax in Maharashtra is higher than neighbouring states, which leads to loss of business for fuel retailers, they said.
Maharashtra imposes 33 per cent sales tax on diesel and 28 per cent on petrol while neighbouring states such as Gujarat levies 23.5 per cent and 26 per cent and Goa 21 per cent and 22 per cent on the two transport fuels respectively.
Petrol pump owners have been demanding bringing down the rate to 24 per cent. Barely two months ago, petrol pump dealers in the city had gone on an indefinite strike, which they later withdrew following intervention of Union Petroleum Minister Murli Deora.
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