Inducing fuel prices under the GST bracket, Petroleum Minister assures prices to reduce soon

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New Delhi, May 25: With prices of petrol and diesel soaring high, the people are turning red in anger. Cooling the intensity and waving a green signal towards flooring prices of petrol and fuel, Petroleum Minister Dharmendra Pradhan promised the prices to reduce soon. Bringing the fuel prices under GST framework will eventually help to reduce the prices.

Giving insights on the reduction of petrol, diesel prices been reduced, Pradhan said, “Sighting the international relations of the oil-producing countries it has been noted that international relations have impacted the Indian market pertaining to oil. The international relations between Venezuela and Iran has affected the oil prices on an international level. The currency fluctuations between the dollar and rupees have also impacted on the petroleum sector of the countries.

Speaking further the minister said about bringing the fuel prices under GST under one umbrella. There are different tax slabs between the central and the state government. Noting this, the Petroleum Ministry has always urged councils to bring petrol prices under the GST bracket. When GST has introduced the proposal was taken into consideration but making it law has been sighted. Inducing excise duty has been already done in the month of October. The international market has to be taken into consideration and only then a decision can be taken as the four factors will ultimately affect the prices of petrol and diesel.”

Troubled by the ongoing increasing rate of fuel prices, the people in the country created outrage and disappointed with the soaring prices. Petrol and diesel prices were raised for the 11th day in succession today as the state-owned oil firms gradually passed on to the consumer the increased cost of international oil that had accumulated since a 19-day freeze was imposed just before Karnataka elections.

Since the time the hiatus ended on May 14, rates have gone up by Rs 2.84 a liter in case of petrol and Rs 2.60 in diesel. Petrol costs Rs 77.47 a liter in Delhi and diesel Rs 68.53. The central government levies Rs 19.48 excise duty on a liter of petrol and Rs 15.33 on diesel. State sales tax or VAT varies from state to state. Unlike excise duty, VAT is ad valorem and results in higher revenues for the state when rates move up.