Dikhyaa Mohanty 
Sasmit Patra, a Rajya Sabha MP and senior Biju Janata Dal (BJD) politician, has asked the government to include gasoline and diesel under the Goods and Services Tax (GST) system, claiming that doing so may help rationalize fuel costs and lessen the burden on consumers. In a letter to Union Finance Minister Nirmala Sitharaman, Patra has asked that the suggestion be included to the agenda for the next GST Council meeting so that the Center and States may formally consider it and come to an agreement.
In addition to changing the income structure for the State and the Center, he has stated that an indicative GST rate of 28% on petroleum goods could potentially lower the price of gasoline in Odisha by over Rs 25 per litre and diesel by about Rs 14 per litre. The MP pointed out that petroleum items including gasoline, diesel, natural gas, and aviation turbine fuel are not permanently exempt from GST and may be placed under its purview depending on the GST Council’s decision, citing constitutional requirements under Article 279A(5). According to him, the constitutional structure leaves room for their eventual inclusion.
Additionally, Patra cited previous conversations on the matter, such as those that took place in the 45th GST Council meeting in September 2021. However, the initiative was postponed at the time because a number of states expressed worries about possible income losses. The BJD chief emphasized the economic effects of high fuel prices, pointing out that inflation, transportation expenses, household spending, and agriculture are all directly impacted by gasoline and diesel prices. He pointed out that the price of necessities like food grains and building materials is greatly impacted by changes in gasoline costs.
Citing Odisha as an example, Patra said the State currently imposes around 28% VAT on petrol and 24% on diesel, contributing to retail prices that have recently averaged about Rs 101–Rs 102 per litre for petrol and Rs 92–Rs 94 per litre for diesel. He further stated that inclusion of petroleum products under GST could help reduce retail prices and ease input costs in agriculture and transport sectors, particularly as diesel remains crucial for irrigation and farm mechanisation.
