Chandigarh, Jun 9 (IANS): The Petrol Pump Dealers Association on Thursday asked Punjab's AAP government as to why only liquor, not petrol and diesel prices, were reduced to bring them on a par with neighbouring Himachal Pradesh, where fuel is the cheapest in northern India.

Himachal has grown its revenue from fuels to nearly double in last four years, whereas Punjab is losing its share in the border districts of Pathankot, Hoshiarpur Nawanshahr, Ropar, and Mohali due to prices being lesser in the neighboring Jammu, Himachal Pradesh and Chandigarh.

The Punjab government had reduced value-added tax (VAT) on petrol and diesel on November 8, 2021, which resulted in rise in sale in the districts adjoining Haryana and Rajasthan, association spokesperson Monty Gurmeet Sehgal told IANS.

It also resulted in increased VAT collection, whereas the districts adjoining Chandigarh, Himachal and Jammu are still suffering and more than 80 per cent sales have shifted to these states, he said.

Interestingly, Himachal reduced VAT by Rs 2 per litre and Punjab increased VAT by Rs 2 per litre during Covid-19 restrictions in place, which resulted in the difference of more than Rs 8 per litre in diesel, resulting in mass shift of consumers to Himachal Pradesh.

The association demanded reduction of VAT on petrol and diesel by at least Rs 3 per litre in petrol and Rs 7 per litre in diesel to bring prices on a par with Himachal to revive sales of the border district outlets and provide relief to farmers, transporters and industry of Punjab.