With an aim to control the rise in petrol and diesel prices, Minister of Petroleum and Natural Gas Dharmendra Pradhan on Monday said, in the long run, the government wants to bring petroleum products under the goods and services tax (GST) regime. Also Read - Govt Will Look Into Suggestions of Banning Iron-Ore Exports Amid Supply Crisis: Dharmendra Pradhan
Pradhan told reporters, “I have already categorically stated this issue several times. The present oil price hike is due to three main factors — hike in the international price of crude, fluctuation in the dollar and Indian currency ratio and some of the tax issues are also there. For long-term solutions, the government of India is planning for a holistic strategy. Bringing petroleum products within the ambit of GST is one among them. We are sensitive, let’s see how things are unfolding.” Also Read - Union Minister Dharmendra Pradhan Tests Positive For COVID-19, Admitted to Medanta Hospital
Petrol and diesel prices continue to rise for the 15th day in a row on Monday despite the fact that global crude oil prices fell on Monday. Also Read - 'Going Through Tough Time Due to COVID': Petroleum Minister Says Fuel Price Rise Due to Pandemic
Petrol price in Mumbai on Monday, May 28, was at Rs 86.08 while the cost of diesel was at Rs 73.64 per litre. Petrol price was at Rs 78.27 in Delhi and diesel at Rs 69.17. In Chennai, petrol price was at Rs 81.26 per litre while diesel went up to Rs 73.03 per litre. In Kolkata, petrol price was at Rs 80.91 while diesel cost rose to Rs 71.72 per litre today.
Separately, the government has no plans to bring jet fuel under GST in near future. Finance ministry sources informed the Zee Business that Air Turbine Fuel (ATF) will remain outside the GST regime.
The rise in global crude oil prices has pushed ATF cost by 40 per cent since January 2017. Currently, excise duty of 14 per cent is levied on ATF. In addition, state governments impose a VAT in the range of 4 to 30 per cent on ATF.