Due to the rising prices of petrol and diesel, where India was closed. The price of crude oil was same at its level in the global market.
India closed; political parties in opposition opposed the rising prices of petrol and diesel called for a shutdown. At the same time the prices of petrol continued to rise in the country during the shutdown. The price of petrol in Delhi was up by 23 paise and crossed the Rs 80 for the first time. The price of petrol in Maharashtra is 87.77 rupees. Significantly, the price of petrol in Maharashtra is very close to the level of Rs 90 per liter.
If the Central Government and all the State Governments together make big cuts in their taxes to control. The prices of petrol and diesel in the domestic market then the prices will be able to control prices. But with this step, both the Central and State Governments will have to lose a large portion of their revenue.
If prices of petrol and diesel are seen in the under GST, in a shock, the price of petrol sold at 87.77 rupees per liter in Mumbai will be around 12 to 15 percent cheaper. At the same time, the price of petrol in Delhi can be reduced by about 9% if the tax scope of 28 and 18% of GST.
In order to make the cost of petrol cheaper by reducing the VAT reduction by the states, the Central Government can also deduct minor deductions in its excise tax. At the same time, the price of diesel is on the second and third tax rates given by GST. Prices of diesel can be reduced by 8 to 10 per cent and prices can be kept under the preview of 50 rupees.