ALSO READDaily change in petrol, diesel prices soon; 5-city trial to begin from May Dharmendra Pradhan's Chakravyuha Why retail fuel prices have not moved in sync with crude oil rate changes Petroleum products to be sold on e-commerce platforms soon: Pradhan What caused the hike in fuel prices and how Modi govt can put a lid on it
According to Petroleum Minister Dharmendra Pradhan, the main reason for the increase in product prices was the increase in international prices due to the two hurricane – Harvey and Irma – that hit the US. Thirteen per cent of the US refinery capacity was shut down due to the hurricanes. "In the past three months, the FOB (free on board) price of petrol and diesel in the international market increased by 20 per cent. The recent rise in prices is transient in nature and will ease in the coming days," said a source close to the development.
Pradhan has been demanding that the Goods and Services Tax (GST) Council consider bringing petroleum products within the ambit of GST so as to harmonise the tax structure. Taxes constitute a significant part of the price build-up, with the excise duty on petrol and diesel at Rs 21.48 per litre and Rs 17.33 per litre, respectively. "The government has not increased excise duty on petrol and diesel in the past year and a half... The last revision being in January 2016. We demand it to be included in GST so that fuel will have a uniform tax structure," Pradhan had said.