New Delhi: Union Petroleum and Natural Gas Minister Dharmendra Pradhan on Wednesday ruled out cutting taxes on petrol and diesel to cushion the impact of rising international oil prices that has led to petrol rates increasing by over Rs 6 per litre since the beginning of July.
State-owned oil companies in June dumped the 15-year old practice of revising rates on 1st and 16th of every month and instead adopted a dynamic daily price revision to instantly reflect changes in cost.
Rates during the first fortnight dropped but have been on the rise since 3 July. While petrol prices have increased by Rs 6.08 to reach Rs 69.12 a litre in Delhi, the highest since August 2014, diesel rates have risen by Rs 3.65 to Rs 57.01.
“That situation has not come where we should re-look at tax structure,” Pradhan told reporters on the sidelines of an industry event in New Delhi. The rate changes are being done on a transparent basis and city-wise prices are available through SMS, he said, adding the daily price change model best reflects the happenings in the market.
Pradhan said his ministry was in favour of including petrol and diesel in the goods and services tax (GST) regime, which kicked in from 1 July.
Petrol, diesel, crude oil, aviation turbine fuel and natural gas have been kept out of the GST, which unifies over a dozen central and state levies like excise duty, service tax and VAT.