BJD MP Dr Sasmit Patra has urged Union Finance Minister Nirmala Sitharaman to place the inclusion of petrol and diesel under the GST framework as a formal agenda item in the next GST Council meeting.
In his letter, Patra cited Article 279A(5) of the Constitution, which empowers the GST Council to recommend the date for levying GST on petroleum products. He argued that the constitutional framework envisages eventual inclusion and that the current exclusion has created interstate price disparities.
Patra highlighted Odisha’s situation, where VAT stands at 28% on petrol and 24% on diesel. Retail prices average Rs 101–102 per litre for petrol and Rs 92–94 for diesel. He presented an illustrative GST model at 28%, estimating petrol prices could drop by Rs 25 per litre and diesel by Rs 14 per litre.
He noted that a middle‑class household consuming 60 litres of petrol monthly could save nearly Rs 1,500, translating to annual savings of Rs 18,000–19,000. Farmers and industries dependent on diesel would also benefit from reduced input and freight costs.
At the same time, Patra acknowledged fiscal concerns. Odisha earns about Rs 9,700 crore annually from VAT on petroleum, while Union excise revenue attributable to Odisha consumption is around Rs 5,500–6,000 crore. Under GST, Odisha’s revenue could fall by nearly Rs 4,500 crore and Union revenue by Rs 3,000 crore.
Patra proposed a phased inclusion model, transitional compensation for states, and a calibrated GST rate structure to balance fiscal stability with consumer relief. He stressed that structured deliberation would strengthen cooperative federalism and improve industrial competitiveness.
