Union Minister of Petroleum and Natural Gas, Dharmendra Pradhan assured that the government is working on a holistic strategy to find long-term solution to spurt in petrol and diesel prices caused by a rally in international oil prices. He noted that bringing petroleum products under the ambit of the Goods and Services Tax (GST) is one among them. He said “I have already categorically stated on this issue several times.” Besides, he also pointed out that the present oil price hike is due to three main factors - hike in international price of crude, fluctuation in dollar and Indian currency ratio and some of the tax issues are also there.
However, Pradhan did not respond to a query on the timeline by when petroleum products could be brought under GST. He also refused to say if the government is planning a cut in excise duty to provide relief to consumers. The government had raised excise duty on petrol by Rs 11.77 a lire and that on diesel by 13.47 a litre in nine instalments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.
Petrol and diesel prices continued the upward trend for the 16th consecutive day on Tuesday, even as global crude oil prices receded from record high levels. Petrol in Delhi costs Rs 78.43 a litre and diesel is priced at Rs 69.31. Delhi has the lowest fuel price among all metros and most state capital due to lower incidence of local sales tax or VAT.
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