Will new govt reduce petrol, diesel prices? Here's what Oil Minister Hardeep Singh Puri said

The Centre is currently not considering to reduce the retail rates of petrol and diesel, but a proposal to slash the prices could be brought under consideration if the international crude oil rates fall further, Union Minister for Oil and Petroleum Hardeep Singh Puri said on Tuesday, June 11.

While speaking to media persons in New Delhi, the minister said such a proposal could be brought under consideration only if Brent, the global crude benchmark, slips below $70-$80 per barrel.

Crude rates have softened since earlier this month, hovering around the $80 per barrel mark. The easing of rates was triggered by the OPEC+ decision to gradually end the voluntary cut in output despite the weak market demand.

The international rates have largely remained below $90 per barrel mark since late last year, despite the ongoing Israel-Hamas war keeping the commodities market on the edge.

Notably, retail fuel prices in India have remained unchanged since mid-2022 despite crude oil rates nearly halving in the same period. In early 2022, Brent had surged past the $140 per barrel mark as the outbreak of Russia-Ukraine war led to supply chain disruptions.

Gas under GST?

Puri, while speaking to reporters, said he would push for the inclusion of compressed natural gas (CNG) under the goods and service tax (GST) regime. This may end up lowering the price paid by end-consumers.

"I will try to bring gas under GST," CNBC-TV18 quoted him as saying.

In 2022, Puri, who was also the petroleum minister then, had indicated that petrol and diesel could also be brought under GST if there is consensus among the states.

"For bringing the petrol and diesel under the GST, the states have to agree. If the states make the move, we are ready. We have been ready all along. That's my understanding," he had said.

At presence, petrol and diesel attract two seperate taxes -- excise duty and value-added tax -- levied by the central and state governments, respectively. In addition, other cess are also applied. This takes the overall tax on retail fuel to up to 50% of the selling price in some states.