Price disparity defeating purpose of introducing Euro 6 fuel: dealers

‘Consumers buying polluting fuel from neighbouring States’

November 19, 2018 08:10 am | Updated 08:10 am IST - NEW DELHI

Motorists wait for their turn at a petrol pump in Gurugram.

Motorists wait for their turn at a petrol pump in Gurugram.

The Delhi Petrol Dealers Association (DPDA) on Sunday said the purpose of introducing Euro 6 Emission Standard compliant petrol and diesel in the national Capital was being defeated as consumers were buying cheaper and more polluting Euro 4 fuel from the neighbouring States.

Due to reduction of Value Added Tax (VAT) by neighbouring States recently, fuel prices are lower in these States that sell unclean Euro 4 fuel, said DPDA president Nischal Singhania. “With price disparity of ₹2 to ₹3, the consumers in Delhi are buying Euro 4 fuel from Noida, Gurugram, Ghaziabad, Faridabad, Sonipat and Bahadurgarh adding to the air pollution in the Capital,” said Mr. Singhania.

Decline in sale

Sharing figures, Mr. Singhania said that due to price disparity, sale of Euro 6 fuel in the Capital had declined by about 3.72 crore litres during the month of October.

This means that this much quantity of Euro 6 fuel was replaced by Euro 4 fuel bought in neighbouring States. “In November, projected loss of sale of Euro 6 fuel is expected to be about 4.5 crore litres which would further add to the problem of pollution in the city. The Delhi government along with other measures taken by them to control pollution in Delhi should make Euro 6 fuel cheaper than the neighbouring States by reducing VAT to help in combating pollution,” Mr. Singhania said.

On October 22, all 400 petrol pumps along with linked Compressed Natural Gas (CNG) dispensing units had gone on a 24-hour strike to protest against the Delhi government’s refusal to reduce VAT on fuel prices.

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