Now MP will buy diesel from UP, why did Gwalior Municipal Corporation take this step?
Rahul Tiwari November 15, 2024 05:21 AM

Gwalior Municipal Corporation will now buy diesel from Jhansi in Uttar Pradesh, because diesel is cheaper in Jhansi as compared to MP. In such a situation, the issue of purchasing diesel has now taken on political significance. BJP councilors sitting in the opposition are raising questions on the mathematics of savings of the Municipal Corporation. They allege that Gwalior Municipal Corporation is taking grants from Madhya Pradesh government and is preparing to fill the treasury of Uttar Pradesh.

According to the information, the Municipal Corporation has to buy diesel worth crores every year to run its vehicles. Diesel and petrol are expensive due to high VAT and other taxes imposed in the state. In such a situation of inflation, the Municipal Corporation has worked out the mathematics of savings. To meet its diesel needs, the Municipal Corporation is going to buy it from Jhansi district of Uttar Pradesh. Municipal Corporation will get diesel from Jhansi 4 rupees 31 paise cheaper per liter. It has also been approved by the Municipal Corporation Council.

MP has been eaten, UP's treasury will be filled - BJP councilor

BJP councilors have started protesting against this decision. He says that the Municipal Corporation takes grants from Madhya Pradesh and the treasury will be filled by Uttar Pradesh. This is wrong and in such a situation, Gwalior Municipal Corporation can be said to have made a hole in the plate in which it was eaten.

The statement of MIC member of Congress city government Awadhesh Kaurav has also come to light when the BJP councilors sitting in the opposition opposed this move. He says that the Congress city government is not going to do this for the first time. In the past, during the Corona period, this step has also been taken by administrators to reduce expenses.

Let us tell you why Gwalior Municipal Corporation calculated this savings?

  • Gwalior Municipal Corporation will spend Rs 26 crore on the use of diesel for vehicles in the financial year 2024-25.
  • Indian Oil Corporation is providing diesel to the Municipal Corporation at the current rate of Rs 91 80 paise per liter.
  • The Municipal Corporation requires about 15 tankers of diesel i.e. 12000 liters of diesel every month.
  • By purchasing it from Jhansi, Uttar Pradesh, there is an estimated saving of around Rs 87 lakh every month.
  • In comparison to Uttar Pradesh, there is higher tax on petrol and diesel in Madhya Pradesh.
  • In MP, VAT is 19%, additional VAT is Rs 1.50 per liter and cess is 1%.
  • Apart from VAT 17.08%, no other tax is levied in Jhansi, Uttar Pradesh.
  • This is the reason why diesel is available for Rs 87.49 per liter in Jhansi as compared to Rs 91.80 per liter in Gwalior, MP.

However, due to the mathematics of this saving of the Municipal Corporation, the corporation will benefit lakhs. At the same time, the state government will suffer tax losses worth lakhs every month. In such a situation, it remains to be seen how much more this issue of diesel purchase becomes more serious.

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