Friday, 15 September 2017

Petroleum products under GST? Here's how it would benefit consumers

New Delhi: After Oil Minister Dharmendra Pradhan recently said that GST Council should consider bringing the petroleum products in the ambit of GST, questions are being asked as to whether the government will accept the idea or not.

Market watchers are saying that if government goes ahead with Pradhan's suggestion and include fuel prices under the ambit of GST, there will be a steep downfall in the prices.

Excise duty on petrol and diesel

The government had between November 2014 and January 2016 raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting international oil prices. In all, duty on petrol was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre.

The duty hike resulted in government's excise mop-up more than doubling to Rs 242,000 crore in 2016-17 from Rs 99,000 crore in 2014-15.

The windfall from the excise duty hikes helped the government bridge its budgetary deficit.

Current fuel prices

Petrol price was hiked by 4 paise a litre and diesel by 6 paise per litre on Friday (15th September 2017.) After the revision in price petrol price in Delhi costs Rs 70.43 while diesel price costs Rs 58.80.

While petrol prices have increased by over Rs 7.32 to per litre in Delhi, the highest since August 2014, diesel rates have risen by over Rs 5.36.


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