The Andhra Pradesh Petrol Dealers' Association has agreed to withdraw their strike after talks with the state government.
The AP state information department informed reporters that, "The oil tankers' association and petrol bunks' association called off their strike after fruitful discussions with AP Transport Minister S Raghava Rao at the AP Chief Ministers' Office tonight at around 9.30 pm."
Earlier during the day, the AP cabinet had warned petrol dealers to withdraw their strike failing which the Essential Supplies Maintenance Act (ESMA) would be imposed and the AP government would operate petrol bunks with support from oil marketing companies.
Union Minister for Labour K Acchannaidu had also told reporters that petrol dealers had demanded reduction of value added tax (VAT) on sales.
Petrol dealers had argued that since VAT in neighbouring states is lesser, it led to lower sales of petroleum products in AP.
The AP cabinet had taken the stand that since petrol dealers collect VAT from consumers and pay it to the government, the dealers are not burdened by the tax.
