Under GST, Petrol price could be Rs 38/Litre. Will Government Bring Fuel Under GST?
The prices of petrol and diesel in different cities across the country rose yet again on Friday, September 15, under the dynamic pricing of fuel. On Friday, petrol price went up by Rs 0.04 per litre, taking the cost in Delhi to Rs 70.43 per litre and to Rs 79.54 per litre in Mumbai. Amid rising fuel prices each day, questions are being asked as to whether fuel will be brought under the ambit of Goods and Services Tax (GST).
Petroleum Minister Dharmendra Pradhan had earlier this week said that GST was the only way of having rational prices for fuel, even as he refused to interfere with dynamic pricing. However, he said that the final decision to bring fuel prices under GST was in the hands of the Finance Ministry.
However, former oil minister S Jaipal Reddy has said that bringing fuel under GST is “desirable”, but not feasible as the states would oppose it, but the Centre can cut excise duty on them. “While putting it (petroleum products) in GST is advisable, desirable, it’s not a feasible proposition because state governments…Of the BJP also, will not agree,” the senior Congress leader told PTI in an interview.
According to reports, if fuel is brought under GST, petrol price can come down to Rs 38 per litre from Rs 70 at 12 per cent GST. As of now, petrol prices also contain other elements like Centre-imposed excise duty, state-imposed VAT and dealer’s commission. It now remains to be seen whether Finance Minister Arun Jaitley will pay heed to the concerns put forth by Pradhan and bring fuel prices under GST.
Petrol prices in India as on September 15 are now among the highest rates in Southeast Asia. The prices are also on a three-year high. Earlier this week, Bharatiya Janata Party (BJP) MP Subramanian Swamy urged Prime Minister Narendra Modi to take steps to bring down the prices of petrol and diesel.
The dynamic pricing of fuel has been facing criticism from citizens as prices have risen by almost Rs 7 per litre in the past two months. Dynamic pricing of fuel began in India on June 16. After falling in the first fortnight, prices of petrol and diesel have risen constantly since July 1.