If the petroleum products are covered by GST, the petrol-diesel price will be Rs 45 per liter.

There is no doubt that the world’s engine is still running on petrol and diesel. Changes in the price of each person whether they drive a vehicle or not. Government oil companies in India are continuously raising the price of petrol and diesel due to the continuous increase in the price of crude oil. In February, both fuels cost around Rs 5 a liter. The tax burden of central and state governments has increased the burden of oil inflation on the people of India. To reduce this burden, there is now a strong advocacy of bringing petrol and diesel to GST.

Chief Economic Adviser (CEA) KV Subramaniam today supported the proposal to cover petroleum products under the Goods and Services Tax (GST). But the GST Council has to decide on this. In a recent India discussion with FICCI FLO members, Subramaniam said, “This is a good move”. This has to be decided by the GST Council. Petroleum Minister Dharmendra Pradhan has urged Union Finance Minister Nirmala Sitharaman that petroleum products should be brought under the GST. The continuous increase in fuel prices has increased the burden on the general public. This is an important issue in states where there is no assembly elections. Subramanian said inflationary pressures were mainly due to inflation in food items.

Petrol price today: Petrol costs Rs. 4.87, diesel costs Rs 4.99 in February; No changes have been made today

The central government is concerned about lowering petrol and diesel prices. Petroleum and Diesel prices in the country will be cut in half if the GST Council adopts the suggestions of Petroleum Minister Dharmendra Pradhan. Two days ago, their ministry was constantly requesting the GST Council to include petroleum products in its jurisdiction because it would benefit the people. Finance Minister Nirmala Sitharaman has also issued similar signs.

This affects the petrol and diesel rates.

  • If petrol and diesel are kept at high GST prices, the current prices could be halved.
  • If the GST Council chooses a lower slab, then prices may fall short.
  • There are four primary GST rates in India – 5 percent, 12 percent, 18 percent and 28 percent.
  • If petrol is placed at 5 per cent GST slab, it will be reduced to Rs 37.57 a liter and diesel to Rs 38.03.
  • If fuel is kept in 12 percent slabs, petrol will be priced at 40 percent and diesel at 40.56 rupees.
  • Petrol at 18 per cent GST slab is priced at Rs 42.22 and diesel at Rs 42.73.
  • At the same time, fuel is kept at a slab of 28 per cent, while petrol costs Rs 45.79 and diesel Rs 46.36.

Where is the problem

States are not willing to bring petrol and diesel under the GST regime. The GST was implemented on 1 July 2017. Due to the high reliance of states at the time, petrol and diesel were excluded. If the GST includes petroleum products, the fuel will have uniform prices across the country. So far the petrol price is Rs 4.63 per liter and the diesel price is Rs 4.84 per liter. Tell us what is high. Similarly, petrol will cost Rs 7.22 a liter and diesel 2021 Rs 7.45 a liter.

That’s why demand is soaring

Petrol prices have already crossed Rs 100 in some places in Rajasthan and Madhya Pradesh. Taxes are a big reason why petrol and diesel are expensive. The central government charges excise and state VAT. Now the central and state governments are collecting more than 100 percent tax in the name of excise and VAT. The prices of both are so high that the petrol price in the states is around Rs 90 to Rs 100 per liter.

Input: Agency

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