Pune: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has emphasized the need to build a consensus for bringing petrol and diesel under the Goods and Services Tax (GST), highlighting the potential benefits for India’s energy security. Speaking at the 14th Foundation Day lecture of the Pune International Centre (PIC), Mr. Puri advocated for this move as a long-term strategy, which he has supported for some time.
Mr. Puri pointed out that while the idea has been discussed by Finance Minister Nirmala Sitharaman and in various forums, the challenge lies in getting unanimous approval from all states. Petrol and diesel are significant revenue sources for state governments, especially non-BJP ruled states, which are reluctant to forgo the additional Value Added Tax (VAT) on these fuels.
He mentioned that the Kerala High Court had previously suggested discussing the issue in the GST Council, but some states, including Kerala, opposed the move. Despite BJP-ruled states reducing their VAT, non-BJP states are not willing to follow suit, making it unlikely that a consensus will be reached soon.
In the lecture, Mr. Puri also stressed the importance of enhancing India’s energy security by focusing on strategic petroleum reserves and boosting domestic exploration and production to reduce reliance on imported fuel. With a population of 1.4 billion and projected energy consumption three times the global average, India is expected to play a critical role in the global energy landscape over the next two decades.
He highlighted three key challenges to India’s energy security: ensuring availability, maintaining affordability, and transitioning to renewable energy sources. While green hydrogen holds promise for the future, technological advancements and local demand will be crucial for its success.
Dr. Raghunath Mashelkar, President of PIC, echoed Mr. Puri’s views, underscoring the importance of reducing India’s fuel import bill and accelerating renewable energy initiatives.
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