The government would consult states on bringing petroleum products into the ambit of the Goods and Services Tax (GST), Prime Minister Narendra Modi said on Monday.
Mr. Modi was reacting to suggestions from industry leaders to bring petroleum products, that now face high Central and State levies, into the GST net, at an official meeting with head honchos of the oil and gas industry.
The Centre currently levies an excise duty of ₹19.48 per litre on petrol and states levy VAT ranging between 6% and 48%. Petroleum Minister Dharmendra Pradhan has repeatedly urged the GST Council to bring petrol and diesel under GST.
At the moment, petrol, diesel, natural gas, and alcohol are outside GST.
The PM stressed the need to develop energy infrastructure in eastern India, and urged the private sector to participate in coal gasification and biomass energy through joint ventures.
‘Saudi’s vision lauded’
“The PM thanked the Russian President Vladimir Putin and Rosneft..., for their support to India’s energy sector, and also appreciated the 2030 vision document of the Kingdom of Saudi Arabia,” said a statement from the PM’s Office.
“Warmly recalling his visit to Saudi Arabia, Mr. Modi said many progressive decisions are being taken there in the energy sector. He looked forward to various opportunities for cooperation between India and Saudi Arabia in the near future,” it said.
“The PM said that as India moves towards a cleaner and more fuel-efficient economy, he wants its benefits to expand to all sections of the society, and, in particular, to the poorest.”
Apart from Mr. Pradhan, NITI Aayog vice chairman Rajiv Kumar, executives from global oil majors Rosneft, BP, Saudi Aramco, Exxon Mobil and Royal Dutch Shell attended the meeting, as did RIL chairman Mukesh Ambani and public sector oil majors.
NITI Aayog CEO Amitabh Kant said that India’s oil demand was expected to rise to 7.5 million barrels per day by 2030 from 4.5 million bpd in 2016, raising its share in global demand from 4.65% to 6.8%. India’s gas consumption is expected to rise from 51.2 billion cubic metres in FY15 to 100-110 bcm by FY30.