Petrol and diesel Prices: Is the central government Lowering Fuel Costs?

The current price of petrol and diesel in the country has remained stable, with no daily fluctuations in fuel prices over the last few years. This steady situation suggests that there will be no reduction in fuel prices unless the government takes action to lower taxes.

During the unveiling of the Union Budget 2024, Union Finance minister Nirmala Sitharaman addressed the issue of reducing petrol and diesel prices. It was revealed that the GST Council would be responsible for deciding on any price reductions. Sitharaman stated that if all states can come to a consensus on the matter of GST, there is a chance for a decision to be made. She also mentioned that if all states agree to bring fuel under GST, the government would implement this resolution immediately. However, states did not reach an agreement on this proposal as it would likely decrease their revenue.

The government estimates that petrol products are currently taxed at around 60 percent, providing significant revenue to both the central and state governments. If fuel were to be brought under the GST, taxes would decrease, relieving the burden on consumers while decreasing government revenue. Sitharaman reassured that no state was denied funds in the central budget and addressed criticism about mentioning only andhra pradesh and bihar in the 2024 budget speech. She affirmed that no state has been overlooked for funding and clarified the central government's responsibilities according to the Andhra Reorganization Act, including support for the development of backward areas along with the construction of the new capital of Andhra Pradesh.
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S Venkateshwari

27/07/2024 05:45 PM