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Corporators can make petrol cheaper by Rs 2 with octroi cut

Petrol could be cheaper in the city by up to Rs 2 if elected corporators wish it to happen. In spite of approval from the Standing Committee of the Pune Municipal Corporation (PMC), the proposal for one per cent reduction in petrol octroi was rejected in the General Body (GB) meeting last month.

Without permission in the GB, the proposal could not be sent to the state government. Reductions in the octroi tariff levied on petrol sale can give some relief to the citizens. Currently, the PMC and PCMC are charging two and 2.5 per cent octroi respectively.


Costly ride: A woman fills petrol in her bike at a pump. Currently, the PMC and PCMC are charging 2 per cent and 2.5 per cent octroi on petrol respectively. Pic/Krunal Gosavi

Petrol dealers association and Grahak Panchayat have been demanding a complete waiver of octroi.

Since it would have led to heavy revenue losses, it was decided to reduce the octroi from two per cent to one per cent waive. Ali Daruwala, spokesperson, Maharashtra Petrol Dealers Association said, “We are continuously following up for the past one year, but no action has been taken and PMC told us to issue a fresh application.”

Daruwala said that the core committee of All India Petrol Dealers Association has organised a meeting in Mumbai today with Petroleum Minister Jaipal Reddy to discuss various issues.

He said that the Pune, Pimpri-Chinchwad, Mumbai, Thane and Nashik municipal corporations were the only corporations in the country charging octroi, in which PCMC was charging the highest octroi.

PMC octroi chief Hemant Nikam said, “Without approval in the GB meeting we cannot send application to the state government. For final implementation of this proposal, it should be approved by the state government.”

Standing committee chairman Bapurao Chandare said that no such proposal has reached him so far. “I have not received any proposal regarding octroi reduction till date. If the demand comes, we will think on the proposal and an in-depth discussion with all party members is necessary for that,” Chandare said.

Vikas Mathkari, BJP city chief said that the proposal was approved in the standing committee, but rejected in the GB in April. “On Tuesday we are going to demand strongly for the proposal. Currently, 20-lakh litres of petrol are consumed per day. PMC may face loss of between Rs 20 to 40 lakh per day.

Petrol should be included as an essential commodity and the PMC should give subsidy for octroi,” Mathkari said.  

Restructuring octroi: How it works
Suryakant Pathak, president, Grahak Manch, said: “Octroi should be charged on the basic price of petrol, which is around Rs 58. But the PMC charges octroi on Rs 77.48 (including VAT, licence fees and other charges), which is wrong. In the octroi norms, it is specified that sales tax (which is now vat) should be excluded. If we calculate one per cent octroi on basic price, Puneites can get petrol for Rs 2 to 3 cheaper.”

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