Petrol and diesel prices are likely to come down soon. The government is preparing to bring petrol and diesel under the ambit of GST. Petrol and diesel prices are likely to come down by up to Rs 20. Just yesterday, on June 22, Finance Minister Nirmala Sitharaman said in the GST Council meeting that she is ready to bring petrol and diesel under the ambit of Goods and Services Tax (GST).
The new decision may reduce the revenue received by the state government in fixing the price of petrol and diesel. The maximum rate of GST tax is 28 percent. Even if the central government imposes 28 percent tax, the common man will get a big relief. State governments also impose tax on petrol and diesel. Therefore, now diesel and petrol are expensive. The state government gets revenue from this. Therefore, even if the prices of diesel and petrol decrease, the state government will incur a loss.
How are petrol and diesel prices decided now?
At present, every state imposes its own tax on petrol and diesel. The central government levies its duty and cess on petrol and diesel separately. The base price of petrol and diesel is currently Rs 55.46. The central government is levying excise duty of Rs 19.90 on it. After this, every state government levies VAT and cess in its own way. Due to this, the price of petrol and diesel becomes almost double the basic price. The most expensive petrol in the country is Rs 107.33 per liter in Parbhani, Maharashtra and diesel is Rs 93.74 per liter.
Petrol and diesel became cheaper by Rs 2 in March
Before the Lok Sabha elections on March 14, the price of petrol and diesel was reduced by Rs 2 per liter across the country. The price of petrol in Mumbai is Rs 104.21 and the price of diesel is Rs 92.15 per liter. If the central government brings petrol and diesel under the ambit of GST, then petrol and diesel can be available cheaper by up to Rs 20. The prices of petrol and diesel can be the same across the country.
