Money9 Edit | Government should take firm steps to ease fuel prices burden

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Petrol costing over Rs 100 was once unthinkable. But politics, not crude prices, have made it happen.

Getting fuel under the GST regime will keep costs under check. While states complain of lower revenue, this will keep the common man’s wallet in better health.

The GST Council will have to walk the tight rope of finding balance between states’ finances and those of citizens.

Lower fuel prices will keep inflation low too and potentially boost vehicle sales too. What is good for the citizen will be good for the economy.

Including oil products in GST will not just help companies set off tax that they paid on input but will also bring about uniformity in taxation on the fuels in the country.

Taxes levied by both the Centre and the state governments constitute over 60% of the retail price of petrol and diesel in most of the states making Indian petro products the most highly taxed in the world.

The Centre’s tax collections from petrol and diesel jumped 300% in the past six years but the government says it is helpless as the prices are benchmarked to global crude prices.

Today, in a small relief for consumers, fuel prices dropped after 25 days.

With many sectors yet to recover from the debilitating impact of the coronavirus pandemic, rising fuel prices came as an added blow for those who were already struggling to deal with reduced income levels.