Petrol and diesel prices have lately skyrocketed and, in some cities, the price of petrol hit Rs.85 per litre. In fact, on per-litre prices of petrol, India has one of the world’s highest figures. Despite a global crude price drop, many states had increased their VAT rates, which meant that customers did not gain much from a cost decline. Gradually, the small staggered rises got cumulated to sharp hikes. The argument that bringing oil pricing under the ambit of the goods and services tax (GST) may rationalise and simplify the way petrol and diesel are priced in the country has a lot of merit. GST would not only streamline the tax structure for oil, but also may bring down price levels.

(Financial Express)