Bringing petrol and diesel under the Goods and Services Tax (GST) regime will help retail consumers, commercial entities and oil companies. The fixing of a GST rate on auto fuels will also have a tempering effect on prices of these essential commodities.
This was the consensus at the BusinessLine Knowledge Series webinar on Fuel Prices, How High is too High? moderated by Richa Mishra, Senior Associate Eitor and Chief of Bureau-Delhi, The Hindu BusinessLine.
The session started with a quick poll asking attendees if they thought that the government keeping fuel prices too high was fair on them.
Overwhelmingly, 68 per cent of the recipients felt that the current pricing of auto fuels was unfair.
Responding to questions on how the pricing of petrol and diesel works in the country, Director-General, Petroleum Planning and Analysis Cell, Praveen Khanooja said there have been multiple reforms to deregulate auto fuel prices.
“Today the domestic product prices are dictated by variations in the international market and consumers,” Khanooja said.