Fuel price hike: Bring petrol under GST to arrest surge, say experts


Union Petroleum Minister Dharmendra Pradhan also attributed the hike in fuel prices mainly to rupee depreciation. Located in the eastern part of the state, 200 km from Aurangabad, Parbhani has breached the Rs 90 mark, with petrol prices at Rs 90.05 per litre. Now, three months after, the prices are Rs 84.06, and Rs 77.98. Maintaining its rise with a 14 paisa hike on Tuesday, petrol and diesel were sold at Rs 80.87 and Rs 72.97/litre, respectively.

After refusing any cut in sales tax for over two years, the LDF government finally slashed the sales tax.

In fact, top officials in the Finance Ministry have ruled out any cut in levies in the near future claiming "no scope for a cut in excise duty by the Centre and Value-Added Tax charged by the states".

In a relief to the common man reeling under steep hike in fuel prices, the State government has made a decision to reduce Value Added Tax (VAT) by Rs. 2 a litre from Rs. 4 a litre.

The party has demanded that petrol and diesel should be brought under the GST, by which oil prices could drop by about Rs 15 to Rs 18.

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The Congress party, along with other Opposition parties, had called a nationwide strike across the country on Monday to protest against fuel price hike and the falling value of the rupee against U.S. dollar. BJP's official handles, however, released a faulty graph on social media. Kerala has one of the highest fuel prices in the country.

Meanwhile, the increase pushed the petrol price in Delhi to Rs 80.38 per litre. At the same time, the diesel prices too marched ahead and was priced at Rs 78.83 per litre.

This is a protest against the wrong policies of PM Narendra Modi which has also led to the rupee reaching record lows, said Leader of Opposition Ramesh Chennithala. Even former Prime Minister Manmohan Singh criticised the BJP government for failing to keep its promise.

"60% of our work is heavily reliant on fuel, because of government's taxation policy, we are being forced to live in losses." says Naveen Kumar Gupta, Secretary General of the All India Motor Transport Congress (AIMTC).