Petroleum Minister Dharmendra Pradhan has reiterated that the Goods and Services Tax (GST) must cover all petroleum products. He said that the GST council is appealing to all states to come to a consensus with the Centre on bringing petrol under the purview of the uniform tax. He said that this will help with tax predictability. Meanwhile, petrol price remained same as the previous day on Monday, September 18. While it was Rs 70.51 per litre in Delhi, petrol cost Rs 79.62 per litre in Mumbai.

The proposal for bringing petrol under GST came as petrol and diesel prices rose by over Rs 7 per litre in the past two months. The prices have been constantly rising under dynamic pricing which came into effect on June 16. The prices are now on a three-year high.

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On Sunday, Dharmendra Pradhan said that the rise in prices of petrol was due to several factors. “You have to appreciate the changing scenario. Everyday there is a pinch and relief. Due to natural calamities in the coastal areas of the United States, 13 percent refining capacity has been reduced which impacts the international market and which is now pinching,” the minister said.

Reports say that 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.

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.

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