Union Petroleum and Natural Gas Minister Hardeep Puri stated on Friday that there is an increasing consensus on bringing natural gas under the Goods and Services Tax (GST) regime. However, he refrained from specifying a timeline for this development.
Addressing a press conference, Puri emphasized the progress made in LPG connections, citing the PM Ujjwala scheme. “LPG is 100 per cent saturated,” he said. On the issue of LPG being under GST, Pankaj Jain, Petroleum and Natural Gas Secretary, clarified, “LPG has been under the ambit of GST since the beginning.” Currently, domestic LPG cylinders attract a 5% GST, while commercial LPG cylinders are taxed at 18%.
Ujjwala scheme beneficiaries in Delhi purchase LPG at ₹503 per unit, while the price for non-Ujjwala users is ₹803 per unit.
Responding to a question, Puri mentioned that aviation turbine fuel (ATF) would also be considered for inclusion under GST. “The last GST meeting indicated that ATF is likely to be included soon. The inclusion of natural gas is also under consideration,” he said.
He noted that several states, such as Gujarat, Maharashtra, and Andhra Pradesh, which previously expressed concerns, are now seeing the potential benefits of this shift. While emphasizing that taxation matters fall under the finance ministry and the GST Council, Puri remarked, “I believe it will happen sooner rather than later.”
Puri also provided updates on ethanol blending with petrol. The government is set to achieve 20% ethanol blending (E20) with petrol by February. Initially planned for 2030, this target has been advanced to the 2024-25 financial year, with a longer-term goal of reaching 30% blending by 2029-30.
The government aims to lower oil imports, enhance energy security, reduce carbon emissions, and improve air quality through the E20 blending program. Currently, the blending of ethanol with diesel remains in the experimental stage, and no mandates have been introduced.
Petroleum products, including petrol and diesel, are not yet part of the GST framework. Efforts to include these products have faced opposition from several states over the years.
(ANI)
