Government likely to put Natural gas, aviation fuel under GST, 20% ethanol blending to achieve soon
Union Petroleum Minister Hardeep Puri indicated growing consensus on bringing natural gas under GST but did not specify a timeline. Currently, domestic LPG attracts 5% GST, while commercial LPG is taxed at 18%. Aviation turbine fuel (ATF) is also under consideration for GST inclusion. The government aims to achieve 20% ethanol blending with petrol by February, advancing the original 2030 target to 2024-25, with a goal of 30% blending by 2029-30 to reduce oil imports and carbon emissions.
Union Petroleum and Natural Gas Minister Hardeep Puri stated 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 percent 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 Rs 503 per unit, while the price for non-Ujjwala users is Rs 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.
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.
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Source : PSU Connect
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