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Home Lagatar News

Delhi Petrol Pump Owners Close Pollution Control Centres in Protest of Rate Hike

DPDA Announces Shut Down of PUC Centres Over Unviable Operational Costs

Lagatar News by Lagatar News
July 15, 2024
in Lagatar News, National & International
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Lagatar24 Desk

New Delhi: Delhi’s Pollution Under Control (PUC) centres will cease operations starting Monday, July 15, as petrol pump owners express their dissatisfaction with the recent hike in pollution certificate rates by the Delhi government. The Delhi Petrol Dealers’ Association (DPDA) issued a statement on Sunday, highlighting the unviability of continuing PUC operations under the new rates.

The Delhi government announced an increase in PUC certificate charges for petrol, CNG, and diesel vehicles last Thursday, following a 13-year gap. The new charges range between Rs 20 and Rs 40. Delhi Transport Minister Kailash Gahlot stated that the revised rates would take effect once officially notified.

Due to the unfeasibility of operating PUC centres, many have surrendered their licenses over the past few months. In response, the DPDA has resolved to close PUC centres at petrol retail outlets across Delhi starting July 15. The association criticized the recent hike as arbitrary and grossly insufficient to offset operational losses.

The DPDA has been advocating for revised PUC rates for eight years, previously calling for a shutdown on July 1 due to financial unviability. The last significant rate revision occurred in 2011, with an increase of over 70%. In contrast, the current rate hike, announced after 13 years, is only 35%, while operational costs, including wages, have increased significantly.

Oil marketing companies have also imposed heavy rents on PUC centres, charging 10-15% of total revenue, a practice not seen earlier. Additionally, other operational costs have surged over the past 13 years. Previously, customers paid four times the current cost due to more frequent quarterly PUC certifications, which have now been reduced to once a year for BS-IV and above vehicles, further reducing revenue by 75%.

The DPDA noted that in a recent meeting, the Delhi Transport Minister acknowledged their demands as legitimate. The Delhi government initially proposed a 75% hike based on the inflation index with simple interest calculation, leading to a deferral of the strike on June 30. However, the eventual rate hike of Rs 20, Rs 30, and Rs 40 for different segments represents only a 35% increase, which the DPDA deems unjustified and arbitrary.

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