Oil Minister Dharmendra Pradhan on Monday categorically stated that the answer to the growing fuel prices lie in bringing petroleum products under the Goods and Services Tax (GST) regime.
This statement came a day after Finance Minister Arun Jaitley pointed out saying, “In Delhi, the petrol price is Rs. 70 a litre whereas in Mumbai it is Rs. 80. It could be as low as Rs. 38.10 in both the cities if it were under the GST regime attracting a 12 percent tax”.
Union Minister also asserted that the rise in prices of petrol was due to several factors.
As of now, petrol prices contain other elements like Centre-imposed excise duty, state-imposed VAT and dealer’s commission. So if fuel is brought under GST, petrol price can come down to Rs. 38 per litre from Rs. 70 at 12 percent GST.