Petrol will be Cheaper by Up to 25 rupees per Liter in a day, If it Come Under GST

Petrol will be Cheaper by Up to 25 rupees per Liter in a day, If it Come Under GST

- in Business, News
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@Ajay Rana

If petrol will be cheaper by up to 25 rupees per liter in a day, then maybe there will be no greater news for the common man than this. This can happen if tax on petrol-diesel is removed and put in GST (Goods and Service Tax). Experts show that this is possible because the central government and the state government are currently charging more than Rs 35 per liter on petrol. If prices are brought to GST then in a shock, the price of petrol will be reduced to 25 rupees.

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Discussions have begun to discuss the prices of petrol-diesel once again in GST. Industry body Assocham has demanded to include petroleum products in GST and include some local and some state taxes like stamp duty. If this happens then a huge drop in petrol prices can be seen. Tell you that according to the information given on IOC’s website, a liter of petrol in Delhi is paid as 35.56 rupees for VAT and excise duty. In such a situation, if the government takes this decision then the petrol can be cheap upto Rs 25.

Let’s know how much Petrol can be Cheaper :

According to the information given on IOC’s website, a liter of petrol in Delhi is paid as 35.56 rupees for VAT and excise duty. Apart from this, the average dealer commission costs Rs 3.57 per liter and the VAT on the dealer commission is around Rs 15.58 per liter.

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Also, 0.31 rupees are charged as freight charges per liter. In this regard, you can see tax and commission on the prices of one liter petrol fixed on July 16 in the table below.

Now what if Petrol comes in GST :

  • Actually the cost of petrol is almost the same as tax. After buying the crude oil, it is brought in the refinery and comes out in the form of petrol-diesel from there. After that tax starts imposing on it. Firstly the excise duty is set by the central government. Then there is a turn of states which impose their taxes. This is called a sales tax or VAT.
  • With this, the petrol pump dealer adds his commission to it. If you add center and state tax, then it is almost equal to the actual price of petrol or diesel. Apart from the excise duty, there is VAT ad-velom (extra tax), in which, when the prices of petrol-diesel are increased, the earnings of states also increase.  
  • If petrol-diesel is brought under the purview of GST, then the common man’s schedule is fixed. But the Center and the State Government can be harmed by this.
  • If you see the price of July 25, then it is clear that if the tax is not taken, then the price of petrol will be significantly lower. Depreciation of excise duty and VAT of Rs 73.27 per liter will be left at Rs 37.70 per liter.
  • And if it is added to GST at 28%, it will also sit Rs 48.25 per liter. 
  • If one liter petrol starts selling at Rs 48 instead of Rs 73, then it is easy to guess how big a relief it will be. 

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