Fuel price can come down to Rs 38/L under GST, will govt pay heed?

Mumbai: The dynamic fuel pricing is leading to the continuous rise in the price of petrol and diesel across the country. Price of petrol went up by Rs 0.04 per litre on Friday, taking the cost in Delhi to Rs 70.43 per litre and to Rs 79.54 per litre in Mumbai.

The prices of fuel are altering every 6 am in the morning and the constant steady increase has taken the price to the highest in three years. There have been questions asked as to whether fuel will be brought under the ambit of Goods and Services Tax (GST), reports India.

Petroleum Minister Dharmendra Pradhan had earlier this week said that GST was the only way of having rational prices for fuel. However, the government has not yet taken any definite steps to limit the price.

Meanwhile, the former oil minister S Jaipal Reddy said, 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 of state governments…Of the BJP also, will not agree,” the senior Congress leader told PTI in an interview.

If fuel is brought under GST, petrol price can reportedly come down to Rs 38 per litre from Rs 70 at 12 percent 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.

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.