With constantly rising prices of Petrol and Diesel, can bringing GST into the equation be the solution? Dinesh Rohira: Founder and CEO, 5nance shed some light on the issue in Money Talk with Jeeturaj at Radio Mirchi 98.3 FM.
The constant rise in petrol and diesel prices is burning a hole in the common’s pocket. So, in an attempt to understand the government’s agenda and seek answers to the questions every frustrated Indian citizen is riddled with, Jeeturaj, Mumbai-based host of a financial talk show, ‘Money Talk with Jeeturaj,’ at Radio Mirchi 98.3 FM called up 5nance’s founder and CEO, Dinesh Rohira for expert advice.
Jeeturaj’s main concern was that the petrol prices in Maharashtra have crossed a whopping rate of INR 86 at the present date, so what is in store for the general public in the near future? He also questioned about the average petroleum prices in India and presented concern if these prices will continue skyrocketing!
‘The reason behind this mind-boggling rise in petroleum prices currently is two-fold,’ explained Dinesh. He pointed out that the weakening of rupee to dollar ratio is one aspect that has affected the prices a great deal. For instance, all oil marketing companies lay down the rates as per global crude oil prices. According to which, the present-day price of petroleum at USD 78 should be lesser than what it was in 2010 at USD 147; however, since the value of rupee has decreased, the concurrent oil prices seem to have increased.
The second aspect that is adding to the cause is excise duty and value added tax (VAT) levied by the central and state government. If petrol and diesel prices are brought under GST, then, no doubt, the corresponding prices will fall- even if GST and cess are imposed at the peak rate. However, both the central and state government are currently collecting a hefty aggregate tax from the petroleum industry. If GST is imposed, the common man will definitely reap the benefit of low prices, but there will be a significant revenue loss for the state and central government, which, as is claimed, is being used for comprehensive economic development.
Dinesh further remarked that there is an on-going debate on the issue within the government. Till then the common people can go for alternate solutions to save their hard-earned money, such as car-pooling, traveling by metro, and using electrical vehicles rather than petrol/diesel based vehicles.
Furthermore, doing so will not only help in saving money but will also be a contribution towards economic development in itself, which will consequently reduce the government’s concern to some extent and hence, play in everyone’s favor in the end.