Business

Petrol Prices Rise To Rs 80 in Mumbai, Rs 72 In Delhi

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| January 22 , 2018 , 15:22 IST

The prices of petrol and diesel peaked on Monday in Mumbai, with a litre of petrol costing Rs 80.10 and diesel costing Rs 67.10 per litre. In Delhi, the price of petrol stood at Rs 72.23 per litre on Monday. The recent hike in prices of petrol and diesel followed an increase in international crude prices.

Keeping in mind the rise in prices of petrol and diesel, the central government is reportedly considering to bring fuel under the ambit of the Goods and Services Tax (GST) which it is currently excluded from.

Union Minister for Petroleum and Natural Gas Dharmendra Pradhan on Sunday said that the government is "trying that petrol, diesel and kerosene should also come under the ambit of GST".

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He added that he is hopeful that  the "GST Council will agree to it shortly".

Pradhan cited a steep rise in petrol prices in the international market as being the reason behind the rise of fuel prices in India as well. In addition, states also levy cess on petrol, he said.

Bringing fuel under the ambit of the GST would likely stabilise the prices of petrol and diesel across the states, with the fuel even falling in the range of Rs 50.

Adding GST on petrol and diesel would mean doing away with the centre imposed excise duty as well as the VAT imposed by the respective states. The maximum tax on fuel under the GST would then be capped at 28 percent, although the government may levy an additional cess on diesel and petrol.

At the recent GST Council meet, the issue of bringing petrol and diesel under GST net was not discussed, but Finance Minister Arun Jaitley said it would be taken up at the next meet.