The pricing of petrol is a complex process. However, sadly the difference in rate of taxes in various states is a major concern. This has led to a difference in prices of petrol and diesel across the country. However, fuel pump owners across the country have demanded ‘One Nation One Rate’.
As per a report in Economic Times, All India Petrol Pump Dealer Association added that the difference in pricing is majorly due to different VAT rates in states. This ranges from Rs 0.60 to Rs 4 per litre for diesel and Rs 1 to Rs 7.50 for petrol. At 35 per cent, Tamil Nadu levies the highest tax on petrol. Goa on the other hand has the lowest rate. Diesel on the other hand sees maximum taxes in Rajasthan and West Bengal while the minimum rate is at Haryana.
However, having a uniform price of fuel across the country will require standard value added tax (VAT) rates in all the states. This in itself is a major problem as the money earned by such taxes are the major source of revenue. So while some may stand to gain, others will inevitably end up losing on revenue.
Another way round this could have been the GST route. Implementation of Goods and Service Tax Bill will allow a more uniform tax rate across the country for various goods. If petrol and diesel are included under this, a uniform pricing for fuel across the country is possible. The government though has not made it clear whether petroleum products will be a part of it or remain as an exemption.
We as a consumer though would love to have an overall uniform pricing of fuel across the country. What about you folks?
