Chamber supports UP petrol dealers' strike

The industry association of Uttar Pradesh has extended its full-fledged support to the UP Petroleum Traders Association members, who are on a strike.

A meeting of the core committee of the Indian Industries Association (IIA) was held in Lucknow on Tuesday to discuss issues related to the strike by the UP Petroleum Traders Association. The meeting was chaired by Tarun Khetrapal, president, IIA.

"The 20 per cent reduction in trade tax on petrol and 12 per cent on diesel being demanded by petrol pump dealers' association is quiet justified," said Khetrapal.

Expressing sympathy for their cause, he added the hike in trade tax on petrol and in diesel had a negative effect on micro, small and medium enterprises.

Assessing the effect of the above on small-scale entrepreneurs, Rajneesh Sethi, divisional chairman, IIA, said the high diesel prices posed immense electricity problem for small entrepreneurs.

"Due to the electricity problem, entrepreneurs cannot take advantage of minimum consumption guarantee (MCG) because they have to use diesel as a replacement," he added.

Supporting Sethi, JS Mehrotra, vice-president, IIA, said the government had provided a provision for the entrepreneurs on the use of diesel under Form 3-B.

Under this provision, there is a rebate of 2.5 per cent but small entrepreneurs are usually unable to use it because they do not have ample space for storage of a tank full of diesel. Hence, small entrepreneurs are unable to enjoy either of the facilities.