Bringing petroleum products under GST will not lower fuel prices, says Bihar deputy CM
Union minister Dharmendra Pradhan had said the Centre was considering bringing petrol and diesel under the new tax regime.
Bihar Deputy Chief Minister Sushil Kumar Modi on Saturday said that bringing petroleum products under the Goods and Services Tax will not lower fuel prices, reported PTI.
The Bharatiya Janata Party minister’s comment comes just a day after Union Minister of Petroleum and Natural Gas Dharmendra Pradhan said the Centre is considering bringing petroleum products under the purview of the Goods and Services Tax. Union ministers Nitin Gadkari and Piyush Goyal too had reiterated the Centre’s plan.
“It is a huge misconception that price of petroleum products will be reduced significantly if they are brought under the ambit of GST,” said Modi. He said the impact of bringing petroleum products under GST will be negligible.
Sushil Modi added that the GST Council will take a decision on whether to include petroleum products under the new tax. “There is unanimity in the GST Council that petroleum products will not be brought under the regime until it [GST regime] stabilises,” he said, after reviewing the 64th quarterly State Level Bankers Committee meeting in Patna.
Petroleum products, alcohol, real estate, and electricity have been kept out of the new tax regime.
Petrol and diesel prices rose for the 14th consecutive day on Sunday, with petrol costing Rs 78.12 per litre and diesel Rs 69.06 per litre in Delhi. The prices of petrol and diesel increased by 15 paise and 16 paise compared to Saturday, according to the Indian Oil Corporation. A litre of petrol cost Rs 80.76 in Kolkata, Rs 85.93 in Mumbai and Rs 81.11 in Chennai. Diesel cost Rs 71.61 per litre in Kolkata, Rs 73.53 in Mumbai and Rs 72.91 in Chennai on Sunday.
Since June, the price of fuel in India has been revised almost daily in sync with fluctuations in the price of oil in international markets.