BJD MP Sasmit Patra Urges GST Inclusion of Petrol and Diesel to Ease Fuel Prices

Bhubaneswar: BJD MP Dr Sasmit Patra has urged Union Finance Minister Nirmala Sitharaman to bring petrol and diesel under the Goods and Services Tax (GST) framework in the upcoming GST Council meeting.

Patra highlighted that Article 279A(5) of the Constitution empowers the Council to recommend GST on petroleum products, noting that the framers envisaged eventual inclusion.

Currently, Odisha levies 28% VAT on petrol and 24% on diesel, keeping retail prices around Rs 101–102 per litre for petrol and Rs 92–94 for diesel.

Patra argued that a 28% GST rate could reduce petrol prices by Rs 25 per litre and diesel by Rs 14 per litre.

He illustrated that a middle‑class household consuming 60 litres of petrol monthly could save nearly Rs 1,500, translating to Rs 18,000–19,000 annually.

Farmers and industries dependent on diesel would also benefit from lower input and freight costs.

However, Patra acknowledged fiscal challenges. Odisha earns Rs 9,700 crore annually from VAT on petroleum, while Union excise revenue from Odisha’s consumption is Rs 5,500–6,000 crore.

Under GST, Odisha’s revenue could drop by Rs 4,500 crore and Union revenue by Rs 3,000 crore.

To balance consumer relief with fiscal stability, he suggested phased inclusion, transitional compensation for states, and a calibrated GST rate.

Patra emphasised that structured deliberation would strengthen cooperative federalism and enhance industrial competitiveness.