The LBT may no longer apply to fuel stations in cantonment areas, possibly leading to citizens rushing there for cheaper fuel
With the rollback of local body tax (LBT) in cantonment areas seeming likely, Punekars can now look forward to a dip in petrol and diesel prices there. Without the LBT — which added the burden of an extra two per cent on oil tankers – petrol prices may go down by Rs 3 and diesel by Rs 2 in the Pune, Dehu Road and Khadki cantonments.
Lower prices at cantonment fuel stations could lead to citizens rushing there for a bargain. File pic
The announcement was made by the spokesperson of the Pune Petrol Dealers Association, Ali Daruwala, on Wednesday. Referring to the LBT, which was introduced in April 2013, Daruwala said, “As per the rule, petrol pumps that are in the defence jurisdiction are not liable to pay LBT. I have been running from pillar to post in the past year and a half. It was only after the intervention of Abdul Rehman, deputy commissioner of police (administration), that the illegal collection of money in the name of LBT stopped.”
“I wrote a letter to Pune Municipal Corporation to look into the matter and stop collecting LBT from all the eight petrol pumps that fall in cantonment areas in the city. My main objective is that customers should not have to keep paying extra money as they have for the last one and a half years,” said Daruwala.
The decision should come through by the end of the month, he added. While there is no question about the relief this will bring to the citizens, the change in prices will also impact all other fuel stations in the city. It’s quite likely that citizens will make a beeline for fuel stations in cantonment areas, drawn by the lower prices.
“If this happens, the petrol and diesel pumps in cantonment areas will run dry, just like all the pumps on the Maharashtra-Goa border, where petrol is cheaper by Rs 16. Civic bodies should bring some consistency in fuel prices across the city,” said the president of Sajak Nagrik Manch, Vivek Velankar.
Meanwhile oil company officials have said that they have not received any intimation about the change from PMC or Pimpri Chinchwad Municipal Corporation, and will take necessary steps once they have more information.
Current per-litre petrol price
Current per-litre diesel price
If I get cheaper petrol in the cantonment area, why would I take fuel from anywhere else? This way I will be able to save money and use it for other work.
- Syed Salman, a Kondhwa resident
I have to drop my kids at their school in Camp, so it will be easy for me to fill fuel at cheaper rates. Civic bodies should make prices uniform across the city.
- Francis Santamaria a Hadapsar resident