Punjab’s Sale of Petrol & Diesel is Lower Than The National Average, Here’s Why

Punjab suffers from low sale of diesel and petrol in its fuel stations as compared to the National average sale which is quite shocking owing to the “Urban” nature and dynamicity that Punjab state imparts as its impression to the nation.

Going by virtue of the increase in numbers of vehicle makers in Punjab, the statistics after the survey conducted reveal results that do not comply to what reality of the state has to offer. Sale of Diesel and Petrol in Punjab area is pretty less relative to what the average is calculated at a national level.

Why the sale in Punjab is less ?

A lot of factors are considered and taken into account while zeroing in the approach towards getting to know as to why the sale of diesel and petrol in the fuel stations of Punjab is less than what national average of the sale is. Let us take a look at the facts:

  • Higher amounts of taxes imposed by the Punjab state
  • VAT implied onto the fuel is higher than neighbouring areas
  • People prefer to get fuel from nearby areas at border of Punjab area
  • Higher number of fuel stations concentrated in Punjab state
  • Saturation of fuel stations in the state of Punjab
  • More than 700 fuel stations at the “border” of Punjab

Statistics Say Truth

Theory explaining as to why and how the scenario goes like goes in vain when the statistics and numerical data reveal the truth. Figures speak for themselves in giving out loud in citing reasons for the ongoing shocking trends that Punjab state encounters in terms of lower amounts of sale in diesel and petrol.

Here’s what they say:

  • Punjab’s market share as compared to Haryana declined by 20%
  • Declination went on from 68% to 48% post the year 2000
  • 3830 working fuel pumps in Punjab under PSU’s
  • Indian oil owns 1718 whereas BP and HP lie at 617 & 888 respectively in Punjab
  • National Average monthly sale lies at 170 kilolitres per pump
  • Punjab’s average lies at 122 kilolitres per pump lower than the average
  • Haryana’s 2726 pumps produce an average of 180 kilolitres per pump more than the average
  • Delhi’s average statistics lie at 450 kilolitres per pump which is maniflold
  • Chandigarh lies behind Delhi at 380 kilolitres per pump which is still better
  • Private players like Essar and Reliance suffer losses in Punjab

Tax Woes at Different states, Here’s what Punjab angle reveals!

Charges imposed on the fuel as VAT by different states vary and here’s what happens in and around Punjab region.

  • Punjab levies 36.18% VAT on petrol and 17.36 % on diesel
  • Himachal Pradesh, on the other hand, imposes 27% on petrol and merely 16% on diesel
  • Haryana goes in for 26.25% in petrol and 17.22% on diesel
  • Jammu and Kashmir levies 29.90%
  • Chandigarh being the lowest levies 24.77% on petrol and 16.43% on diesel

Why would not somebody living at the border of Punjab and Chandigarh, like in Mohali area would simply travel around for two kilometres to get his car fuelled to the fullest saving whopping amounts of money in terms lowering tax rates on the same amount fuel taken?

As simple as it may sound, but cost effectiveness to consumers steal the entire show business and Hence, now we know why and by how much Punjab lags behind other states and most importantly national average sales in terms of petrol and diesel at its fuel stations.

Source: The Tribune

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Oberoi Aneesha

A visionary keen on writing her heart out and making content as true calling of her life; Meet Aneesha Oberoi, a Goal-oriented free spirited girl whose passion is to write and is an engineer by profession. You may reach her at hello@chandigarhmetro.com