GST won’t stop oil price fluctuations: Economic advisor

GST won’t stop oil price fluctuations: Economic advisor

The inclusion of petroleum products under the Goods and Services Tax (GST) will not prevent price fluctuations as India is a massive importer of crude and domestic prices will reflect global price movements, said Sanjeev Sanyal (in pic), principal economic advisor in the finance ministry.

“We will have a uniform rate across the country. GST inclusion is not going to solve the issue of oil prices going up and down. GST does not solve the fundamental problem that we are importing oil and global prices keep fluctuating. GST will not solve that at all.

It will just take away the discretion charge differently as per state taxes. Oil prices will still go up and down because oil prices are externally determined,” said Sanyal in an exclusive interview with Financial Chronicle.

“Inclusion of petroleum products in GST would not bring down their prices in case of crude price hike globally. At best, it would bring uniformity in the prices of petrol and diesel across the country,” said Sanyal. Read More

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