Finance Minister Nirmala Sitharaman has admitted that higher prices of petrol and diesel are driving the burden on consumers. Consumers need to be exempted from the high prices of petrol and diesel, but this requires tax cuts at the central and state levels. Central and state taxes account for 60 percent of the petrol retail price. In the case of diesel, it is up to 56 per cent. In some places in Rajasthan, Madhya Pradesh and Maharashtra, petrol has crossed Rs 100 per liter, while in other parts of the country their prices are still high.
Record Increase in Central Excise
Sitaraman had a record increase in central excise duty on petrol and diesel last year to take advantage of the crude oil price drop in the international market. At this time, the price of crude oil in the international market had fallen to a two-decade low. However, Sitharaman said nothing about taking initiatives towards central tax cuts to provide relief to consumers.
Price itself is a complex issue
Speaking to reporters at the Indian Women’s Press Corp (IWPC) on Friday, Sitharaman said: “As far as consumers are concerned, it is a matter of forcing them to cut fuel prices.” Customers understand the burden, but their pricing itself is a complex issue, he said. Sitharaman said, “That’s why I used the word ‘Dharmasankut’. I want to speak to the state and the center. The center does not only tax on petroleum products. Sitaraman said that goes to 41 states.
The Modi government is considering that petrol can be cheaper up to Rs
The Finance Minister said there are several layers to this issue. In such a situation, it is appropriate for the center and the state to discuss between themselves. On the issue of bringing petrol and diesel under the Goods and Services Tax (GST), Sitharaman said any decision in this regard should be taken by the GST Council. Currently, the central government sets excise duty on petrol and diesel.
Bringing oil under GST is only cheaper
At the same time, it is charged by different states at different rates. Bringing it under GST combines both. This leads to a comparison in vehicle fuel prices. In such a situation, the problem of higher prices would be solved in states with high value added tax. When asked if the Center would make such a proposal at the next meeting of the GST Council. In response, the council said it would be considered when the meeting deadline expires.
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