Oil Minister wants petrol, diesel to come under GST

Oil Minister Dharmendra Pradhan ruled out government intervention to disrupt the daily revision in petrol and diesel prices.

“GST is the only way to have a rational price mechanism for petroleum products..the industry has been demanding it and finance minister Arun Jaitley (who heads the GST Council) is very interested to have it,” Pradhan said.

He said the international prices of petrol and diesel have recently gone up by 18% and 20%, respectively.

Pradhan noted that global crude oil prices had recently gone up as much as 15% owing to production being hit in the U.S owing to the impact of multiple hurricanes.

“The government will not interfere in the day-to-day functioning of the OMCs… for the last three years, the pricing mechanism has been linked to the market,” he said.

Pradhan also said that the decision on reducing the cess on petroleum products rests with the finance ministry, adding that this revenue, however, allowed the government to increase social sector spending.

(Agencies)

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