(a) whether several States and Union Territories have urged the Union Government to provide petrol, diesel and other petroleum products at uniform rates across the country;
(b) if so, the details thereof along with the reaction of the Government in this regard; and
(c) whether the Government has increased/decreased prices of petroleum products during the last three years and if so, the details thereof along with the reasons and justification therefor?
MINISTER OF PETROLEUM AND NATURAL GAS
(SHRI DHARMENDRA PRADHAN)
A statement is laid on the Table of the House.
Statement referred to in reply to parts (a) to (c) of Lok Sabha Starred Question No. 92 asked by Shri P.K. Kunhalikutty to be answered on 17th December, 2018 regarding “Uniform Rates of Petroleum Products”.
(a) & (b)
No such request or recommendation has been received from any State/UT. Further, prices of petrol and diesel are different in various states due to imposition of VAT rates and inland freight. VAT is imposed by the respective State Governments and varies from state to state.
Uniform rate of tax across states can be achieved through GST. Clause 12A of Article 366 of the Constitution of India defines ‘Goods and Services Tax’ (GST) as “any tax on supply of goods or services or both except taxes on the supply of alcoholic liquor for human consumption”. Further, Article 279A (5) provides that Goods and Services Tax Council shall recommend the date on which Goods and Services Tax shall be levied on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel. Thus, while petroleum products are included under Goods and Services Tax, the date on which GST shall be levied on such products shall be as per the decision of the Goods and Services Tax Council.
(c)
Prices of petrol and diesel have been made market-determined by the Government with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel in line with international product prices and other market conditions. The OMCs have not only increased but also decreased the prices accordingly. The Government continues to modulate the effective price to consumer for Subsidized Domestic LPG and RSP of PDS Kerosene. The details of revision in prices of petroleum products may be seen at Petroleum Planning and Analysis Cell (PPAC) website www.ppac .org.in .
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