There is another hike in the fuel prices in the country on Friday morning with petrol price updated to Rs. 78.52 per litre and diesel comes at a price of Rs. 70.21 per litre in Delhi. With this, we can say that the price of petrol has been increased by Rs. 0.22 per litre since Thursday and for diesel the price increased is Rs. 0.28 per litre in the national capital. The increase in fuel prices is mainly due to rise in the price of crude oil and high excise duty levied on transportation fuel in the country. Currently, Brent crude oil is being sold at around USD 76.68 per barrel.

In Mumbai too, the prices for petrol were increased up from Rs. 85.72 per litre on Thursday, to Rs. 85.93 per litre (increased by Rs. 0.21 per litre), and diesel prices have shot up by Rs. 0.30 per litre from Rs. 74.24 per litre to Rs. 74.54 per litre.

As on August 30, the price of petrol was Rs. 78.30 per litre in Delhi and diesel price was increased upto Rs. 69.93. And in Mumbai, the price for petrol was set at Rs. 85.72 per liter and diesel at Rs. 74.24 per litre.

Till now, there is no such proposal by the Union finance ministry to bring petrol and diesel or even natural gas under GST, but the issue was taken up at the GST Council meeting on August 4 as per the reports by media. If both the fuels are to be brought under GST, the government at the have funds for any contingency like the floods in Kerala.

A total of Rs. 19.48 per litre is levied by the Centre for excise duty on petrol and Rs. 15.33 per litre on diesel. Additionally, states levy Value Added Tax (VAT). The city of Mumbai levies the highest amount of VAT of 39.12 percent on petrol, while the state of Telangana levies highest VAT of 26 percent on diesel. The national capital of Delhi charges a VAT of 27 percent on petrol whereas for diesel it charges 17.24 percent. If summed up, the total tax incidence on petrol will become 45-50 percent and for diesel it will become 35-40 percent.

There have been many debates regarding the issue of bringing fossil fuel under GST, but the government does not seems to have any action plan for it. So, there is a need for the public to push government to make the prices some cheaper.

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