Maharashtra ready to bring petrol under GST: Devendra Fadnavis

Petrol station

Petrol station

Petrol price in Mumbai crossed Rs 85 on Thursday, May 24, and is fast approaching the Rs 80 mark in Delhi, with no relief from continuous hike in fuel prices.

On Saturday, petrol prices touched an all-time high since 2013, then Sunday the prices surpassed that of Saturday while on Monday the prices of petrol and diesel created a new all-time record in Mumbai and Delhi by touching as high as Rs. 84.40 and Rs. 74.57. Analysts believe that the less production of oil in the OPEC and hike in crude oil prices in the global market are some of the factors affecting the fuel price hike. Talks are going on with finance ministers of all states, Fadnavis said, adding, "Once petrol and diesel are brought under the ambit of GST, its threshold will change, because right now, taxes upon taxes are levied which increases rates".

While the retail prices have gone up, the prices at which the fuel is sold to petrol pump dealers have come down drastically since 2013. "The rise in prices is completely outside the government's [control]".

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Over the next fortnight, prices are set to rise another 2p per litre as a result of the rising cost of a barrel of oil which hit $80 (£60), for the first time since mid-November 2014. The cut is likely to be in the range of Rs 2 to Rs 4 a litre, they added. Basically, the problem is "taxes" which are imposed by the government on petrol and diesel.

Prices of diesel and petrol in India have surged to a record high, stoking opposition criticism of Prime Minister Narendra Modi's administration for causing hardship to ordinary people. The cost of petrol in Delhi today is at Rs 77.47/litre, and those having diesel cars will have to dish out Rs 68.53 per litre. "Though VAT on fuel in many states is higher than Gujarat, these states have not reduced this tax like we had done", Patel, who also handles Finance portfolio, said.

In April, Pradhan had said the Centre and the state governments have been considering bringing the petroleum products under the ambit of Goods and Services Tax. For obvious reasons, the government kept fuel prices in check during the Karnataka assembly elections but prices have started shooting up as soon as the polls were over.

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