Petrol, diesel prices in India are rising day by day and now have crossed Rs 70 mark and are still increasing. Why are the prices increasing even when the rates have reduced in the international market? Do you know what will happen if petrol- diesel is put under GST? Working President of KPCC Dinesh Gundu Rao has come with certain facts on the matter.
According to the latest statistics, the petrol price has increased to Rs 80 in Mumbai, Rs 73 in Kolkata, Rs 71.50 in Bengaluru and Rs 70 in Delhi. While comparing in Bengaluru alone, the petrol price was Rs 64.24 on July 1 which increased to Rs 66.39 on August 1; it increased further to Rs 70.34 on September 1.
According to Petroleum Minister Dharmendra Pradhan, the prices have increased due to rise in the international price due to Irma and Harvey cyclone. But the current rate of international petrol per barrel is 41 to 42 dollars, and it has not increased due to the cyclone.
Speaking about the price hike in 2008, Dinesh Gundu Rao said that on June 27 that year the price of crude oil had reached 141 dollars per barrel. The petrol price was increased to Rs 38.13 and was available in the retail market at Rs 50.56. But currently the price of crude oil is Rs 41 to Rs 42 in the international market, but people are made to pay more than Rs 70 per litre of petrol across the country.
Why not apply GST?
After GST prices of most things in India have gone up. But it is not so in terms of petrol and diesel. If these two things are brought under GST, the price will reduce considerably. But the Centre is no mood to make the changes, and it looks like the daily revision of prices is helping them a lot. Here are the statistics.
If petrol is brought under GST people will have to pay 28 percent tax. According to a statistics (as told by Minister Rao) currently people are paying 51.6 percent tax. Accordingly, people will be asked to pay Rs 21.48 as the Central Tax and Rs 14.89 as Vat tax for the states which will come up to Rs 36.67.
However, this price is lesser than the 51.6 percent tax system which works well with the daily revision of prices. Thus the Centre is not talking about adding petrol and diesel in the GST list.