It is not every day that we come across a way in which fuel prices could be slashed so drastically.
According to financial experts, bringing petrol and diesel under the purview of GST could have massive cost benefits. The astronomical prices of petrol and diesel especially in the last couple of years have hurt the common people the most. In fact, this massive surge in fuel prices caused people to look for alternatives because of which CNG vehicles experienced a colossal boost in their sales. Also, carmakers are shifting their focus to strong hybrids with better mileage to compensate for the high fuel prices.
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Petrol Cost After GST
There has been a discussion in the central government about bringing petrol and diesel under the purview of GST. That move will help in bringing down fuel prices significantly. Currently, there are a ton of cess and taxes associated with fuel prices at various levels. With GST, these will be combined and there will just be the GST and dealer commissions. According to some estimates, the price of petrol in Delhi could come down to around Rs 75 per litre from the current Rs 97 per litre.
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However, the catch is that the current taxes that are applicable to fuel generate revenues for the state governments. Liquor and energy are two of the highest revenue-generating streams. That is the reason why they might not be that keen on bringing this sector under GST. Nevertheless, if it does happen, it is the general public and car owners that stand to benefit the most.
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The Petroleum and Natural Gas Minister, Hardeep Singh Puri said, “For bringing the petrol and diesel under the GST, the States have to agree. If the States make the move, we are ready. We have been ready all along. That’s my understanding. It is another issue how to implement it. That question should be addressed to the finance minister.” Let us wait and watch how this issue develops in the coming times.
