The Union government would consult the 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 now levies an excise duty of ₹19.48 a litre on petrol and the States levy VAT ranging between 6% and 48%. Petroleum Minister Dharmendra Pradhan has repeatedly urged the GST Council to bring petrol and diesel under the GST.
At present, besides petrol and diesel, natural gas, and alcohol are also outside the GST.
Mr. Modi stressed need to develop energy infrastructure in eastern India, and urged the private sector to participate in coal gasification and biomass energy through joint ventures.
Thanks Putin, appreciates Riyadh's vision document
“The Prime Minister thanked Russian President Vladimir Putin and oil major 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 Prime Minister’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 Prime Minister 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 Rosneft and other global oil majors, 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 India’s oil demand was expected to rise to 7.5 million barrels per day (bpd) 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.
