Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has called for a consensus on bringing petrol and diesel under the Goods and Services Tax (GST), a move he has long advocated. Speaking at the Pune International Centre’s (PIC) 14th Foundation Day lecture on the topic “Strategy and Measures for Enhancing India’s Energy Security in the Coming Decade,” Hardeep Singh Puri emphasized the need for such a shift as part of India’s broader strategy to enhance energy security and reduce its dependence on imported fuel.
Hardeep Singh Puri acknowledged that achieving consensus among states would be a challenge, given that fuel is a major source of revenue for them, particularly through additional VAT. He highlighted that many non-BJP-ruled states have been resistant to the idea of bringing fuel under GST, as they are unwilling to forego the revenue generated from VAT. Hardeep Singh Puri noted that while BJP-ruled states have reduced VAT on fuel, non-BJP states have shown reluctance, hindering progress toward implementing the change. He pointed out that discussions have already taken place in the GST Council, but agreement remains elusive.
Reflecting on the legal framework, Hardeep Singh Puri mentioned that the Kerala High Court had previously suggested that the issue of bringing petrol and diesel under GST should be taken up by the GST Council. However, the finance minister of Kerala did not support the move at the time. He emphasized that any such reform would require unanimous approval from all states, as the GST Council operates on consensus.
Beyond GST, Hardeep Singh Puri outlined India’s broader energy security strategy, emphasizing the need to focus on strategic petroleum reserves, increased exploration, and enhanced production to reduce reliance on imported fuel. He stressed that India, with its 1.4 billion population, is poised to become a major player in the global energy landscape, accounting for 25 percent of the world’s energy consumption growth over the next two decades.
Hardeep Singh Puri identified three primary challenges to India’s energy security: availability, affordability, and the transition to renewable energy. He also discussed the potential of green hydrogen as a future fuel, contingent on local demand and production capacity. Additionally, he warned that while there is no global shortage of oil, geopolitical tensions could lead to rising prices, making it crucial for India to diversify its energy sources.
In closing, Dr. Raghunath Mashelkar, President of PIC, reiterated the need to reduce India’s fuel import bill and advance renewable energy initiatives to secure the nation’s energy future
