There is an upward revision of petrol prices on a daily basis and keeping in tandem is the rise of LPG cylinders. Both being the basic necessities of life there was a hue and cry of the people for making these items available at affordable prices. Keeping this in mind the Centre convened a meeting of state finance ministers to resolve the issue by bringing the petroleum products within the ambit of GST and doing away with VAT and other state imposed taxes, which if implemented, would have made petrol available in the range of Rs 30-40 per litre across the country.
Regrettably the state finance ministers unanimously opposed the move citing loss of revenue to the state exchequer.
It may be noted that the periodic rise of petrol is not linked to the demand and supply situation at the global level as when crude oil prices fall, our prices remain constant. It is a well known fact that the politicians and the bureaucracy enjoy a free supply of petroleum products and other freebies at the taxpayers' expense and that could be the motivating factor for their refusal to bring petroleum products under the ambit of GST.
In the Covid pandemic situation where there is rising unemployment, loss of jobs and spiraling cost of living, such a gesture of goodwill would have gone a long way in mitigating the hardships of people.
