Senior Biju Janata Dal (BJD) MP Sasmit Patra has called on the Central Government to bring petrol and diesel under the Goods and Services Tax (GST) regime, saying the move could ease the financial burden on citizens and help control inflation across the country.

In a letter addressed to Union Finance Minister Nirmala Sitharaman, Patra urged the Centre to place the proposal before the GST Council for discussion during its upcoming meeting. He argued that including fuel within the GST framework would lead to more uniform fuel prices across states and provide much-needed relief to consumers struggling with rising living costs.

The BJD leader pointed out that the Constitution already provides a mechanism for petroleum products to be included under GST through recommendations of the GST Council. However, despite repeated discussions in previous council meetings, the proposal has not moved forward due to concerns over possible revenue losses for state governments.

Patra highlighted that the current taxation system on fuel includes heavy excise duty and state-level Value Added Tax (VAT), which significantly increases retail fuel prices. He noted that Odisha imposes substantial VAT on petrol and diesel, contributing to high prices faced by consumers. According to him, bringing fuel under GST could considerably reduce retail prices and lower transportation and logistics costs.

The Rajya Sabha MP stressed that high fuel prices have a direct impact on several sectors, including agriculture, transportation, manufacturing, and household spending. He said the burden is particularly severe for middle-class families, farmers, small businesses, and transport operators who depend heavily on diesel and petrol for their daily activities.

Patra also referred to estimates suggesting that fuel prices could decline notably if GST is implemented on petroleum products. He said such a move would not only benefit consumers but also help reduce inflationary pressure on essential commodities and services.

Acknowledging the concerns of states regarding loss of tax revenue, Patra proposed a phased implementation strategy. He suggested that the Centre could introduce compensation mechanisms and transitional financial support to ensure states do not face sudden fiscal challenges after the shift to GST.

The BJD MP further stated that bringing petrol and diesel under GST would strengthen cooperative federalism and simplify the country’s taxation structure. He emphasized that a uniform tax regime could improve economic efficiency and reduce price differences between states.

The demand comes at a time when fuel pricing continues to remain a major political and economic issue across India, with consumers frequently expressing concern over fluctuating petrol and diesel prices.

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