Daily change in fuel prices to continue & Oil Minister bats for Petroleum products to come under GST

By Ridhima Malhotra

In April this year, Petroleum Minister Dharmendra Pradhan's first touted the idea of daily revision of petrol and diesel prices. Many hailed the move and said that it would eliminate steep jumps in rates that consumers witnessed almost every fortnight. But critics have maintained that the government had failed to pass on the benefits of slumping crude oil prices to the end-users. The petrol prices have however been witnessing a steep increase since July, but the government continues to rule out any intervention to regulate prices.

After meeting the heads of state-run firms, Mr. Pradhan told the PTI, "The government has no business to interfere in day-to-day operations of oil companies... government will interfere only to improve operational efficiency of oil companies". The Minister added that it was time for the GST council to deliberate on bringing Petroleum products under the ambit of GST.  It is imperative to note that as of now, petrol and petroleum products, including diesel and natural gas are exempt under the GST. 

Mr Pradhan has gone on to say that the spike is temporary, attributing it to  calamities like Hurricane Harvey and Irma. The long term impact of the daily fuel revision policy on households will only unravel in the months to come.