Petrol station dealers in Noida are projecting a substantial loss in business as a result. Dealers in other UP border areas are also likely to be affected. But at least a few pumps are fighting back or intend to do so by providing facilities such as department stores.

``We have had to offer more and more of our regular customers credit facilities,'' says a Noida dealer. ``Our daily cash earnings which have fallen from Rs 2 lakh two years ago to about Rs 80,000 now.''

One shop which has innovated is the Dolly motors station in Sector 21 which has introduced a department store selling everything from chocolates to soaps to pizza. ``We've found that whenever people come to buy petrol they also drop in at the store to buy a few things,'' says owner Captain Arun Kalsi (retd). ``This has provided a substantial boost to our business.'' But even he admits that his business has suffered because of the price hike though `only temporarily'.

``We stand to lose at least 25 percent of our business,'' says Bobby Joseph, who works at a petrol pump in Sector 14. Earlier the price of petrol and diesel in UP exceeded the price in Delhi by 80 paise and 47 paise respectively. ``That difference didn't affect business much.'' But after the hike in sales tax, the price difference has widened to Rs 2.10 per litre for petrol and 87 paise for diesel. Sagar Singh of the Varma petrol station too projects a loss of over 30 per cent in business. ``And that's a minimum estimate,'' he declares.

The preference for Delhi over Noida is not new. For all those who live in satellite townships such as Noida or Faridabad and commute to work in Delhi, the practice has generally been to buy their petrol in Delhi and then head back home since prices are lower. Says Atul Peshawaria, spokesman for the Delhi Petrol Dealers Association: ``Customers have become much more conscious of the price difference. No one will pass up the opportunity to save more than Rs 2 per litre if they can.''

The problem is exacerbated by the fact that a considerable proportion of the population of Noida either works in Delhi or goes there on a regular basis. ``Even if a person goes there once a week, he or she can fill up the vehicle with petrol for the whole week and then return home,'' says B.S. Suri, President of the Delhi Petrol Dealers Association.

Bobby Joseph says that the petrol station he works in is planning to offer customers facilities such as a department store. ``This scheme when implemented in other pumps has drawn customers like a magnet and we hope it will do the same here,'' he says.