Petrol, diesel prices at record high: Union road transport minister Nitin Gadkari advocates bringing fuel under GST
With petrol and diesel rates skyrocketing on a daily basis, Road Transport and Highways Minister Nitin Gadkari on Friday advocated bringing fuel under the GST to curb the price hike.
New Delhi: With petrol and diesel rates skyrocketing on a daily basis, Road Transport and Highways Minister Nitin Gadkari on Friday advocated bringing fuel under the GST to curb the price hike.
"Petrol and diesel should have been brought under the Goods and Services Tax. I asked officials during a presentation if we bring fuel prices under GST will it benefit the states or not.
"They said 'yes', they will benefit," Gadkari said at a news conclave here on the four years of Prime Minister Narendra Modi's government.
He said, however, the states were wary of losing revenue on account of taxes they collect from fuel prices and liquor.
"It will be good if fuel prices are brought under GST. This will not only reduce the fuel prices but will also increase the government's revenue."
He, however, said it was his personal opinion, and the ultimate decision regarding this remained with the Petroleum Ministry.
The Minister said fuel prices were surging because of international crude oil rate.
"Earlier, we were giving subsidy on the import (of fuels). When the rates came down, the subsidy was removed. We are part of a global economy...The price of petrol and diesel are increasing due to rise of their price in international rates."
He said the money that was saved from removing subsidy on fuel allowed the government to give free Liquid Petroleum Gas (LPG) connections to eight crore families across India.
Petrol is now above Rs 100 per litre in six states and Union Territories - Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana and Ladakh.
In line with the party's symbolic protest, Congress leaders KC Venugopal and Shakti Singh Gohil arrived at the Feroz Shah Kotla Stadium petrol pump on a horse cart
Petrol rates are presently above Rs 100 in six states and UTs — Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana and Ladakh