Call for Inclusion of Petrol and Diesel in GST by Odisha MP
Naveen Patnaik's MP Calls For Bringing Petro-Products Under GST

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Sasmit Patra, a Member of Parliament from Odisha representing the Biju Janata Dal, has urged Union Finance Minister Nirmala Sitharaman to bring petrol and diesel under the Goods and Services Tax (GST) framework. He argues that this change could significantly lower fuel prices and reduce the overall cost of living, especially in light of recent price hikes.
- 01Patra's letter to Sitharaman emphasizes the impact of high fuel prices on food, transport, and household expenses.
- 02Currently, Odisha imposes a VAT of nearly 28% on petrol and 24% on diesel.
- 03Under a 28% GST framework, petrol prices could decrease by approximately ₹25 per litre and diesel by around ₹14 per litre.
- 04The GST Council's decision on this matter is crucial, as it involves potential revenue losses for states.
- 05Patra proposes a phased inclusion model and transitional compensation support to mitigate revenue impacts on states.
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Sasmit Patra, a Biju Janata Dal MP from Odisha, has formally requested Union Finance Minister Nirmala Sitharaman to include petrol and diesel under the Goods and Services Tax (GST) framework. In his letter, he highlights the significant burden that high fuel prices impose on various sectors, including food, transport, and household expenditures. The recent hike in fuel prices has drawn criticism from the Opposition, particularly given the backdrop of geopolitical tensions in the Middle East and substantial losses for oil companies. Currently, Odisha applies a VAT of nearly 28% on petrol and 24% on diesel, which contributes to elevated retail prices. Patra argues that transitioning to a 28% GST could reduce petrol prices by about ₹25 per litre and diesel by ₹14 per litre. He acknowledges that any changes would require careful consideration by the GST Council, which includes both central and state representatives, due to concerns over potential revenue losses. To address these challenges, he suggests a phased approach to inclusion, along with transitional compensation for states to ensure fiscal stability during the transition.
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If petrol and diesel are included in the GST framework, it could lead to lower fuel prices, thereby reducing the overall cost of living for residents in Odisha.
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