Across social media and WhatsApp forwards, there is a persistent claim that once petrol and diesel are brought under GST and the GST rate is cut, prices will drop dramatically to around ₹88 per litre for petrol and ₹73 per litre for diesel.
This sounds appealing to many consumers, but in order for such prices to be true, several legal, administrative, and economic changes must happen simultaneously, none of which have been confirmed by the government as of now.
Why Petrol and Diesel Are Not Yet Under GST
Currently, petrol and diesel remain outside the GST regime. Although the law (CGST Act, 2017) contains provisions allowing petroleum products to be included under GST when a date is notified, the GST Council has not yet made that notification.
Until that happens, taxes on fuel are collected via central excise duty imposed by the Union government and VAT by the individual state governments.
The Finance Minister, Nirmala Sitharaman, has stated that while the Centre is willing and legally ready to bring petrol and diesel under GST, the decision depends on getting the consent of the states.
Many states rely heavily on VAT from fuel for their revenue, so they are cautious about losing income if fuel comes under GST.
Would a GST Inclusion Automatically Cause Prices to Fall to ₹88 / ₹73?
Even if fuel is included under GST, prices would not automatically fall to those levels unless the combined tax burden (excise + VAT + other levies) were drastically reduced, and the GST rate set is low.
Because fuel prices already include many components cost of crude oil, refining, transportation, dealer margin, state taxes, central excise, cess etc. removing VAT or replacing excise does not guarantee a large drop unless all these components are reworked.
Moreover, states losing VAT may demand compensation, or set GST rates high in order to make up for lost revenue.
Thus, the drop to ₹88/₹73 per litre would require not just a GST switch, but aggressive rate cuts, and perhaps subsidisation or absorption of some costs. As of now no official calculation or announcement supports such specific numbers.
Government Statements & Challenges Ahead
Government officials have repeatedly acknowledged the idea of bringing petrol and diesel under GST, saying the legal framework allows it, but stressing that states must agree before making the change.
In recent times the GST Council has discussed it, but in many cases proposals have been delayed or rejected, especially because states fear losing revenue. The CBIC chairman has said that, given the revenue implications, it “may not be possible” to bring these items under GST at present.
Consequently, there is no date or concrete plan that promises such a dramatic price fall, and the numbers in the viral claims appear speculative rather than based on government-issued figures.
Conclusion: Verdict on the Viral Claim
In conclusion, the claim that petrol will cost ₹88 per litre and diesel ₹73 per litre after a GST cut is not supported by any current policy or announcement.
While inclusion under GST could potentially reduce fuel prices under certain scenarios, the drop would likely be much smaller, and hinges on many moving parts: agreement of states, setting of GST rates, compensations, changes in ancillary costs, and stability in crude oil and currency rates.
Until there is a government notification about bringing fuel under GST and a detailed proposal showing cost implications, these viral numbers remain speculative and should be treated with caution.