Petrol pumps with linked CNG dispensing units will be shut in Delhi starting from 6 am on Monday till 5 am Tuesday.
The pumps will be shut in protest as the Delhi government earlier refused to reduce Value Added Tax (VAT) on diesel and petrol in the national capital.
Delhi Petrol Dealers Association has called the protest in which around 400 pumps will be closed.
DPDA president Nischal Singhania said, "The central government had slashed the rate of petrol and diesel by Rs 2.50 per litre each on September 4. This was followed by a reduction of VAT (value added tax) by various states including neighbouring Haryana and Uttar Pradesh, bringing relief to their residents.
"But, the Delhi government refused to reduce VAT on fuel both petrol and diesel resulting in fuel becoming more expensive than bordering Haryana and Uttar Pradesh."
In comparison to Delhi, fuel rates in bordering states like Uttar Pradesh and Haryana are cheaper, he said. Because of the high price in Delhi and low prices in states like UP and Haryana, customers are deserting the petrol pumps in Delhi leading to a huge drop in sales, Singhania said.
Due to difference in prices, there has been a sharp drop of 50-60 per cent in sale of diesel in Delhi and 25 per cent in petrol in this quarter, the DPDA president said, adding that on Monday, all the 400 pumps of Delhi will neither purchase nor sell petrol, diesel and CNG.
He said the festival season is peak season for the sale of fuel due to social travelling by residents.
"DPDA urges the Delhi government to immediately reduce VAT on petrol and diesel and encourage commuters to buy euro VI fuel and save the livelihood of employees and owners of petrol pumps of Delhi and also save state's revenue loss," the statement said.
Meanwhile, commuters may also face problems as auto-rickshaw and taxi unions have decided to go on a strike on Monday against the Delhi government's policies on cab aggregators.
"The one-day 'Chakka Jaam' protest by the Sanyukt Sangharsh Samiti will be held as the government failed to listen to our grievances," said Inderjeet Singh, chairman of the All India Tour and Transport Association and convener of the joint forum.
"Auto-rickshaw and taxi drivers are losing their employment due to wrong transport policies of the government and also due to low fares offered to commuters by cab aggregators," he said.
Thousands of members of the affiliated associations will also go on strike and peacefully hold a protest on Sunday, he said.
Singh said the Sangharsh Samiti was awaiting the state government's response on its offer to hold talks.