Nitin Gadkari says bring fuel under GST as price rise continues

With petrol and diesel rates skyrocketing on a daily basis, Road Transport and Highways Minister Nitin Gadkari on Friday, May 24 advocated bringing fuel under the Goods and Services Tax regime to curb the price hike.

On May 25, fuel prices rose for the 12 consecutive day. Media reported that petrol price was now up by a whopping over ₹11 since the Karnataka election day on May 12. Diesel was up by ₹7.27 since May 12.

"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," said Gadkari at a news meet in Delhi on four years of Prime Minister Narendra Modi's government.

Gadkari said, however, the states were wary of losing revenue on account of taxes they collect from fuel prices and liquor.

Gadkari, 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.

Inputs by NH Web Desk