The Goods and Services Tax (GST) Council is going to meet in Lucknow on Friday, in which discussions are likely to be held on bringing petrol, diesel and other petroleum products under its ambit.
If the proposal is accepted, it will lead to a drastic reduction in central and state duty on petrol and diesel and significantly reduce consumer prices of automobile fuels. According to a report by Hindustan Times’ sister publication Live Hindustan, this could push the price of petrol to Rs 75 per liter and diesel by Rs 68 per litre.
The matter will be brought up for discussion and decision on September 17, as directed by the Kerala High Court, which in June issued directions to include petrol and diesel under the purview of GST.
At present, petrol is being sold at ₹101.19 per liter and diesel ₹88.62 per liter in Delhi. In the national capital, the central levy is over 32% of the price of petrol, and the state tax (Value Added Tax or VAT) is 23.07%. Central excise duty on diesel is more than 35% while state tax is more than 14%.
By 2020, as global crude oil prices fell, the central government raised excise duty on the fuel to shore up its finances. States also followed suit as revenue was hit due to the pandemic. According to official data, the petroleum sector contributed 3,71,726 crore central excise duty and 2,02,937 crore state duty or value added tax (VAT) in 2020-21.
It is represented by the state finance minister and its decisions are often unanimous.