How GST on Petrol, Diesel will bring down prices

The soaring prices of petrol and diesel has time and again highlighted the question of whether bringing it under the goods and services tax (GST) regime will prove beneficial for the consumers.
The much debated and speculated issue might finally come to a conclusion on Friday when the 45th GST Council meets in Lucknow.
For the first time in 20 months, the GST council will be conducting a physical meeting. After December 18, 2019, all the GST Council meetings were done in virtual mode.

“We are not saying that we should bring petrol and diesel under GST immediately, we are basically asking states to suggest a timeline,” a government source told TOI ahead of the crucial meeting of the GST Council on Friday.
When GST was introduced in July 2017, five commodities — crude oil, natural gas, petrol, diesel and aviation turbine fuel (ATF) — were kept out of the GST purview, considering the revenue dependence of the central and state governments on them.

As demand recovered, the spike in global oil prices pushed petrol and diesel prices to an all-time high, leading to demand for bringing it under GST.
Fuel prices have been hovering at record levels on account of 41 increases in its retail rates since April this year.
However, since the past 11 days there has been no revision in prices of petrol and diesel as oil marketing companies (OMCs) kept a tab on global oil prices.
Accordingly, in Delhi a litre of petrol costs Rs 101.19 and diesel costs Rs 88.62.
Similarly, price of petrol in Mumbai, Chennai and Kolkata stood unchanged at Rs 107.26, Rs 98.96, Rs 101.62 per litre, respectively.

Diesel price also remained unchanged. In Delhi, Mumbai, Chennai and Kolkata, the fuel was sold for Rs 88.62, Rs 96.19, Rs 93.26 and Rs 91.71 per litre respectively.

Prices are largely going to remain unchanged or get some relief by way of a cut in days ahead as global oil is expected to soften again.
Oil cartel Opec and its allies have agreed to gradually raise production levels that should prevent upward price movement.

Written by : Ananya Kaushal