Delhi petrol pump owners withdraw strike

Petrol pump owners in the national capital have withdrawn their 24-hour strike, which was to begin midnight to demand a rollback of increase in VAT for diesel, after the government "assured" them that it would look into the issue.

Delhi Petrol Dealers' Association president Atul Peshawaria said the strike, which was to begin at midnight, was withdrawn late Thursday night after a discussion with chief minister Sheila Dikshit.

"Dikshit assured us that the government will look into our demand within 15-20 days. If there is no positive development during this period, we will be forced to think of an agitation," Peshawaria said on Friday.

He also said that petroleum minister Murli Deora has also assured them that appropriate action will be taken to address their concerns.

The dealers were demanding immediate rollback of the increase in VAT rate for diesel from 12.5% to 20% announced in the Delhi budget.

They claimed that there was an "alarming" fall in diesel sales in the capital because of the hike in prices.

"Diesel is expensive compared to adjoining Noida and Gurgaon. We are losing our business to them. It is not us alone who is losing money, the government is also losing money as the sales are going to the neighbours," Peshawaria said.

The dealers claimed that the monthly diesel sales in the capital had dropped to 8.5 crore litres from 13.5 crore litres.