SBI economists' formula: Petrol can be reduced by Rs 17 and diesel by Rs 13, if there is charity

New delhi date. Thursday, March 4, 2021

The rising prices of petrol and diesel have put the common man of the country in trouble. The opposition is constantly trying to surround the government on this issue. Ordinary people are also annoyed with the government because of this price hike. In many parts of the country, petrol prices have hit a century.

In the midst of all this, the country's economists have come up with a formula. A report has been released by economists of SBI i.e. State Bank of India. Within this, SBI's research team has advised to bring petrol and diesel under GST. At the same time, the report said that there should be a political will for this work. So in a nutshell, this work can be done if the government is generous.

If the government brings petrol and diesel under GST, petrol will be Rs 75 per liter and diesel Rs 68 per liter. This means that the price of petrol can be reduced by about Rs 16 per liter and the price of diesel by Rs 13.

The SBI report said that if GST was introduced on petrol and diesel, the revenue of the state and central government would be reduced by only Rs 1 lakh crore. Which is only 0.4 per cent of GDP. Asbai's report was received by SBI Group's Chief Financial Adviser Dr. Prepared by Soumya Kanti Ghosh.

Petrol and diesel are the main source of revenue for the state and central government, which makes them reluctant to bring it under GST. But from the figures given by economists, it seems that the government is not likely to suffer any major losses.

Economists have stated in the report how this will be possible. The price of a barrel of crude oil is 60 60, now we have an exchange rate of Rs 73 per dollar. One barrel contains 1129 liters of crude oil. The transportation cost within the report is Rs 7.25 on diesel and Rs 3.82 on petrol. The dealer commission is then priced at Rs 3.67 per liter on petrol and Rs 2.53 per liter on diesel.

In the report, SBI has advised a cess of Rs 20 per liter on diesel and Rs 30 per liter on petrol. Of which both the Center and the State will get a share. Petrol will then be subject to 28 per cent JST. Of this, 14 per cent will go to the Center and 14 per cent to the state government.

It may be mentioned that at present the state government levies tax on petrol and diesel at its own discretion. While the central government earns by deducting cess and duty. The report said that bringing petrol and diesel under GST would hurt some states. Maharashtra will suffer the most. The report estimates that Maharashtra will lose Rs 10,424 crore.

In this direction, the revenue of Rajasthan government will be reduced by 6388 crore and the revenue of Madhya Pradesh government will be reduced by 5489 crore. So the revenue of Uttar Pradesh, Haryana and West Bengal can increase in this direction. But all this is possible only if the government has the generosity.