India had cut factory gate tax on the two fuels by 2 rupees ($0.0311) a litre each last week while presenting the federal budget, but it did not result in lower retail prices as new taxes were added.
The five petroleum items have been kept out of GST as they are considered cash cows, giving both the Centre and states bulk of their tax revenues.
Prime Minister Narendra Modi, who faces elections in key states later this year, and a nationwide election in early 2019, has faced pressure over a rise in retail prices of petrol and diesel to a record level.
Responding to a query, the minister said the spike in petrol rates in the international market has impacted the cost of the fuel in India.
Petrol price rose to Rs 71.56 per litre in Delhi today, the highest since August 2014. Rates in Mumbai are almost touching Rs 80.
Punjab Finance Minister and Congress leader Manpreet Singh Badal said GST was projected as a regime that would usher in growth, but its "flawed" implementation had resulted in a fall in GDP and created an "economic mess".
Petrol price rose to Rs 71.18 per litre in Delhi today, while diesel prices soared to their highest level of Rs 61.74 per litre.
Fuel prices are now dynamic and unregulated which means prices change on a daily basis based on the crude oil rates and the demand and supply mechanism.
"The Next Gen Verna with 1.4 L Kappa Dual VTVT petrol engine is the perfect combination of performance and fuel efficiency and showcases Hyundai's commitment to providing products based on customers' aspirations," HMIL Director Sales and Marketing Rakesh Srivastava said in a statement.
Consumption of fuel, a proxy for oil demand, totalled 17.39 million tonnes, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed.
The ordinance has now been sent to Commercial Tax Department and the levy would take time and isn’t immediate, he clarified.
Finance Minister Arun Jaitley told Rajya Sabha on December 19 that the Centre favoured bringing them under GST but it would want a consensus with the states before taking such a step.
“Government is in favour of bringing petroleum products under GST. We would like to await consensus of the states and hope states at some stage soner or later agree to the consensus,” said Jaitley.
Beijing Automotive Group Co (BAIC) chairman Xu Heyi said over the weekend the company will phase out sales of conventional cars in Beijing by 2020 and nationwide by 2025, according to the official Xinhua news agency.
Consumption of fuel, a proxy for oil demand, totalled 17.41 million tonnes, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed.
Indian Sugar Mills Association (ISMA) said around 66 crore litre of ethanol was lifted by OMCs (oil marketing companies) for the ethanol blending programme in 2016-17 season (December–November). The previous record was 111 crore litre in 2015-16.
With 60,799 outlets dispensing petrol and diesel at the end of October, India is behind only US and China in number of petrol pumps, data available from Petroleum Planning & Analysis Cell of the Oil Ministry.
"Coal has been included and levied with 5 per cent tax but gas is outside GST, how fair is that," he said at the KMPG Energy Summit here.
China has set strict quotas for electric and plug-in hybrid cars that come into effect from 2019. It has an ambitious target of 2 million NEV sales by 2020 and has signalled longer-term it will phase out the sale of conventional petrol-engine cars.
The administration announced that the value added tax (VAT) on diesel or high speed diesel will be reduced from 16.40 per cent to 11.40 per cent.
Echoing views expressed by Dharmendra Pradhan, Union Minister of Petroleum and Natural Gas earlier, Reddy said state governments should reduce their VAT on the fossil fuel.
"The Madhya Pradesh government has decided to reduce VAT on petrol by 3 per cent. The VAT on diesel is reduced by 5 per cent. Moreover, the additional cess of Rs 1.50 per litre has also been withdrawn," state Finance Minister Jayant Malaiya announced after a meeting with Chief Minister Shivraj Singh Chouhan.
It is unlikely that the government would want to tinker with the GST structure and introduce any slab higher than 28 percent. But if it decides to bring it under GST, it will be at a huge cost.
The petrol pumps across the state will remain closed on October 13 as a part of the strike call give by United Petroleum Front.