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Petrol Pump owners have threatened to go on an indefinite strike from June 14 if a recent increase in tax on diesel, that they say has badly hit their business, is not withdrawn.

“ Chief minister Sheila Dikshit has not fulfilled her promise of resolving our problems. It leaves us with no other choice,” said Atul Peshawaria, president of the Delhi Petrol Dealers’ Association, a group of at least 450 pump owners.

Petrol dealers will shut shop every Monday beginning May 24 to cut losses, said Peshawaria, and close down indefinitely after June14.

Fuel dealers say they will be out of business soon if the value added tax ( VAT) on diesel — raised in the budget this April — persists for long.

Diesel sales in April plunged to nearly half year- on- year, indicating several diesel buyers have already shifted from Delhi to Haryana where diesel is cheaper by nearly Rs 4 per litre, Peshawaria said.

Fuel dealers staged a protest outside Dikshit’s house last week and placed bouquets outside her official residence at 3, Motilal Nehru Marg.

They are now planning a demonstration on Monday at a petrol pump on Race Course Road, near the Prime Minister’s home.

Fuel dealers say they will not settle for anything less than parity in tax structure in the two states so that diesel costs the same.

Anil Bijlani of the dealers’ association said either the Delhi government should reduce the tax on diesel or make Haryana raise it at par.

“ We met Delhi finance minister A. K. Walia on Sunday and showed him with sale statistics that even the state government is losing revenue because of the increase in tax,” Bijlani said.

The state government said it is earning more tax revenue despite the drop in sales but they still pushed for tax parity with Haryana at a conference of finance ministers last week.

“ The talks drew a blank and it was then decided that the chief ministers of the two states will have to resolve the dispute,” a finance official said.

Walia had said last week that if Haryana were to raise its tax on diesel for parity, then Delhi will also have to increase the tax on petrol, which is higher in Haryana.

But Bijlani said they had no problem if the tax on petrol was raised. “ If we want parity, then we want it at all levels,” he said.

In June 2008, Haryana had reduced VAT on diesel from 12 per cent to 8.8 per cent, thereby making it cheaper than Delhi where VAT on fuel was 12.5 per cent.

From 13.5 crore litre a month, the sale of diesel in Delhi came down to 8.5 crore litre a month — a loss of 37 per cent, Peshawaria said.

Bijlani said the already bleeding dealers were dealt another blow when the Delhi government raised the VAT on diesel to 20 per cent from April 1.

“ This has resulted in diesel being costlier in Delhi by almost Rs 4 per litre when compared with the price at which it is sold in Haryana,” he added.

Delhi is bordered on all sides but East by Haryana. Uttar Pradesh borders the state in that direction.