After Motor Vehicle Act Implementation, People In Odisha Have Reduced Buying Petrol And Diesel

Motor Vehicle Act 2019 has created turmoil in the minds of Indian motorists with up to 5 times increase in traffic penalties. While the move was aimed at making the Indian roads safer, the drastic escalation is having some undesired effects as well. It looks like people in the state have reduced driving altogether.

This has had a direct impact on the petrol and diesel sales in the state. As per a recent report by ANI, fewer vehicles are now plying on the roads of Odisha, thanks to the fear of heightened fines. The resulting decrease in the consumption of petrol and diesel combined in the state is reported to be 16.5 lakh litres of fuel.

The total loss due to this is around Rs 5 crore, as mentioned in the same report by Sanjay Lath, general secretary of Utkal Petroleum Dealers' Association. "The implementation of the new Motor Vehicle Act 2019 has led to a decrease in the sale of petrol by 4,08,000 litres per day and in the sale of diesel by 12,45,000 litres per day," he said.

"The state is losing revenue of Rs 58 lakh per day and Rs 81 lakh per day excise duty on petrol. On diesel, the state government is losing out Rs 1,78,00,000 per day and the Central government is losing out Rs 1,97,00,000 per day," the report quoted Lath.

(Representative Image: BCCL)

A possible trend?

The new and increased penalties on traffic rule violations has got the general public confused, if not scared, on what exactly are the violations and what are their corresponding penalties. Since some states have not implemented the new laws, they are still following the old penalties, while others have started doling out harsh challans to the defaulters.

On top of this, with the revised penalties, the police force on several states are now implementing rules which existed earlier but were not imposed strictly. Mandatory seat belts for rear-seat passengers, not wearing slippers or flip-flops while riding gear-based two-wheelers, having no graphic stickers on the windshield or number plate, being some of them.

So naturally, the citizens are a bit reluctant on using their own vehicles for commuting. This is bound to have an impact on several aspects related to vehicle use in India. While the insurance companies are enjoying up to 500% increase in insurance renewals within a week, petroleum retailers are facing the blunt of reduced demand. As the confusion settles in due time, the new laws will become easier to follow for motorists in the country while the associated industries will hopefully reel from the immediate impact.