Trucks stop refueling in state due to high price
Source: Chronicle News Service

Imphal, July 20 2021: Considering fuel prices in Manipur are the highest among the northeastern states, majority of the trucks and tankers transporting goods have stopped refueling in the state, which in turn has impacted the revenue earned by the state from fuel.

According to a report, the price of petrol and diesel in Manipur is one of the highest among the north eastern states, with petrol costing Rs 106.81 per litre in Manipur; while in Nagaland, the price is Rs 100.36, Assam Rs 97.64 and Meghalaya Rs 96.92 per litre.

The price of diesel in Manipur is Rs 93.85 per litre; while in Nagaland, the price is Rs 91.99, Assam Rs 89.22 per litre and Meghalaya Rs 88.60 per litre.

As such, trucks and tankers entering or exiting Manipur prefer to refuel in other states like Assam and Meghalaya to save money ie, Rs 5-7 per litre.

Speaking to The People's Chronicle in this regard, an oil tanker driver said that a tanker requires 400-450 litres of fuel while going to other states to procure the petroleum products for the state.

Based on this, the tanker owners shell out the exact amount of money needed, after taking into account the petrol and diesel prices.

Thus, instead of refueling the exact volume of fuel in the state, drivers only refuel the tanker for 100 litres in Manipur and then refuel the remaining in other states.

"For example, if a driver refuels in Meghalaya, he is able to save Rs 6 per litre, which totals up to Rs 1800.Thus, most truck and tanker drivers try to save money by refueling in other states", he stated.

Presently, there are 600 tankers providing service in the state.

On top of this, around 3000 trucks are operating along the two highways, not to mention about the other transport trucks plying along the highways.

This sheer number of trucks/tankers helps in increasing the fuel revenue of the state.

However, the high rate of fuel prices has negatively impacted the revenue of the state, the driver commented.

It may be noted that the state government collects a VAT of Rs 27.45 on per litre of petrol and Rs 16.83 on per litre of diesel.

On top of this, a central excise and other taxes of Rs 32.90 on per litre of petrol and Rs 31.80 on per litre of diesel are collected.

Additionally, the dealer's commission is fixed at Rs 3.18 on per litre of petrol and Rs 2.31 on per litre of diesel.

In this regard, a proprietor of a retail outlet conveyed to this daily said that the VAT collected by the state government is quite high compared to the other north-eastern states, which has resulted in higher fuel prices.

If the state government lowers the VAT, the revenue lost due to tankers refueling in other states, could be re-added to the account of the state exchequer.

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