According to him, the Ministry is considering bringing petroleum products under the purview of the GST in order to bring down the prices of petrol and diesel.
He added that forecasts suggested average petrol and diesel prices would rise by a further 1ppl over the next two weeks. Additionally, states too would be asked to cut sales tax or VAT to show a visible impact on retail prices.
He added that while oil minister Dharmendra Pradhan will meet oil marketing companies on Wednesday, they have been insisting that all petro products be brought under the Goods and Services Tax. But now under the NDA government for every litre of petrol the consumer has to pay more than 50 % of its value as Central and state government taxes.
Mumbai: Petrol prices across the four metro cities rose for the 12 consecutive day on Friday, but consumers can expect some respite in the coming days as global crude oil cost eased.More news: Trump heralds US military in Naval Academy commencement address
China on 1 April 2006, began levying the special upstream profit tax on domestic oil producers to redistribute and allocate the windfall income enjoyed by the oil companies and subsidise disadvantaged industry and social groups that are most affected by soaring crude oil prices. The Centre's excise tax is much more than the state's tax. Brent, the benchmark worldwide rate for petrol, continues to remain in the high range increasing the pressure on the government to cut excise duty on petrol and diesel.
Five years ago during the UPA government the crude prices were 40 per cent costlier than subsequent years.
The Union Minister said the Centre had cut excise duty on fuel by Rs 2 in October previous year. So, continuous rise of fuel prices surely rubs salt into the wound of the common man.
You can keep abreast of the latest fuel prices by following #racfuelwatch on Twitter. For the eleventh straight day on Thursday, petrol prices have increased higher by 30 paise while diesel has also scaled to a new high by surging 19 paise today.