Rajasthan petrol dealers threaten indefinite strike beginning June 1 over fuel supply disruptions.
Dealers demand VAT reduction and protest restrictions imposed by oil marketing companies statewide.
Association warns diesel curbs could disrupt farming activities during upcoming monsoon sowing season.
The Rajasthan Petroleum Dealers Association on May 26 warned of an indefinite strike starting June 1 if the state government ignores demands regarding fuel pricing, supply shortages, administrative actions and tax reductions.
The association sent a letter to Chief Minister Bhajanlal Sharma on May 26 seeking his immediate intervention and a meeting before the June 1 deadline. Association President Rajendra Singh Bhati said the principal secretary has not convened a meeting despite repeated letters and emails.
1 May 2026
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"If no solution is reached soon, petrol pump operators across Rajasthan would be compelled to go on strike from June 1," Bhati said.
Supply Curbs Hit Dealers
According to the Rajasthan Petroleum Dealers Association, oil companies have imposed fuel supply limits through verbal instructions, WhatsApp messages and mobile communication. The dealers said that pump operators who supply fuel beyond these prescribed limits face unilateral action, including the suspension of sales and the issuance of notices; consequently, this situation has led to confusion among consumers and crowding at fuel stations.
"The biggest issue dealers are facing is disruption in petrol and diesel supply. Several petrol pumps in the state are running dry on a daily basis," Bhati said.
The association also expressed resentment over pressure from oil marketing companies to sell branded fuel, despite weak consumer demand driven by higher prices. Bhati raised additional concerns over restrictions on providing diesel in drums to farmers ahead of the sowing season.
"The curbs could create serious problems in rural areas during the monsoon and agricultural operations," Bhati said.
Financial Grievances and Pricing Disparities
The association's core demands include a reduction in the state VAT on petrol and diesel. VAT is a consumption tax levied on goods at each stage of distribution, and the association argues that these elevated VAT rates have severely impacted local businesses.
"Rajasthan has among the highest fuel prices in the country due to elevated VAT rates. Tax rates should be brought at par with Punjab, including a reduction of at least 5%," Bhati said.
The association also flagged pending payments for fuel supplied on credit during the prime minister's visits and government rallies, leaving dues worth lakhs of rupees unresolved, which has put financial pressure on dealers. Bhati said the government is also failing to act against the illegal trade of biodiesel and base oil, adding that the government had taken no concrete action despite repeated complaints.
Biodiesel is a renewable fuel synthesised from vegetable oils or animal fats, and the illegal trade of biodiesel has severely impacted local dealers. Compressed natural gas prices in Rajasthan remain higher than those in Haryana and Punjab, with wide price variations across districts causing dissatisfaction among consumers.
(With inputs from PTI.)
