Petrol and diesel prices are at an all-time high due to exorbitantly high taxes from both central and state governments. There is a way to bring them down.
Petrol and diesel prices have skyrocketed beyond three digits. The petroleum minister has even said that although fuel costs are a concern, they cannot reduce.
However, the Goods and Services Tax Council, or GST Council, will meet in Lucknow to discuss ways to reduce the price of petrol and diesel. They may put petrol and diesel under the GST system, which will help in significant price reductions.
Petrol will drop to Rs. 75 a litre and diesel to Rs. 68 a litre if accepted. The proposal will be presented to the Council for discussion and decision on 17 September. Under June, the High Court of Kerala granted orders to include petrol and diesel in GST.
Petrol costs Rs. 101.19 per litre at the moment, while diesel costs Rs. 88.62 per litre in New Delhi. Tax is the main contributing reason to the increase in fuel costs. The central government collects 32%, while the state governments takes 23.07% on petrol. On diesel, the central government collects 35%, while the state collects more than 14%.
Union Finance Minister Nirmala Sitharaman stated that there is no method to lower the fuel price excise duty. She blamed it on previous governments' payments instead of previously subsidized fuel prices. Congress was our country's former ruling party. Congress did not pay the difference between the lower retail price and the international fuel market price, according to the Union finance Minister.
"If I had no burden of oil bond service, I would have cut excise duty on fuel tax," she said. By issuing oil bonds, previous governments made our job harder. Even if I wanted to do anything, I'd have to pay high oil bonds interest."