The worst affected petrol outlets are in SAS Nagar, where it costs Rs 25.16 per litre, as against Rs 22.75 per litre in Chandigarh, making it costlier by Rs 2.41.

Petrol pump owners of the township claim that sales have slumped to 20 per cent of last year's daily average and only 700 litres of petrol is being sold daily, as against 8,000 litres a day in Chandigarh.

Oil companies' officials attributed the downturn to difference in sales tax. "Sales tax in Chandigarh is being charged at a flat rate of 15 paise per litre of motor spirit (petrol), which comes to 0.6 per cent, while in Punjab and Haryana, it is 15.2 per cent and 10 per cent, respectively," they said.

In Zirakpur, petrol costs Rs 24.90 per litre while in Panchkula it is Rs 24.06 per litre.

Talking to Newsline, Sethu Ram Singla, who owns a petol pump in Panchkula, bordering Chandigarh, says that sales have gone down from 7,000 litres to 700 litres per day, while a petrol pump located nearby in the UT, does brisk business and sells 8,000 litres of petrol per day.

He added that Panchkula dealers had made several representations for the removal of disparity in sales tax, but to no avail: "We are surviving only on service stations."

Another petrol pump owner from SAS Nagar, G. S. Chawla, said that the sale of petrol up to Patiala and Nangal had been hit because of disparity in sales tax. "Our sale has been reduced by 80 per cent and only 500 to 600 litres of petrol is being consumed daily, while in the neighbouring petrol pumps, the sale touches 8,000 to 10,000 litres a day," he added.

However, Chandigarh Petroleum Dealers Association secretary Amanpreet Singh said: "Chandigarh is aided by the Centre, as sale of petrol is a major source of revenue here, as compared to the neighbouring states."

He disclosed that four per cent Central Sales Tax is presently being levied on sale of petroleum products, in addition to local sales tax, which is not applicable in Punajab and Haryana.

"Petroleum dealers of Punjab and Haryana should approach their respective chief ministers for reduction in tax," association president Arjan Singh feels.

It may be recalled that the parliamentary Standing Committee on Petroleum and Natural Gas Ministry, in its sitting on March 18, had advised the states to vigorously pursue introduction of uniform sales tax with the Finance Ministry.