Fuel prices will drop instantly if brought under GST: Chidambaram

New Delhi : In the wake of the recent petrol and diesel price hike across India, former Finance Minister P. Chidambaram on Monday claimed that fuel prices would immediately come down if brought under the ambit of the Goods and Services Tax (GST).

Addressing a press conference here, Chidambaram said the onus for bringing petrol and diesel under the GST should not be on state finance ministers.

"The Bharatiya Janata Party (BJP) boasts of having power in 19 states, then why are they passing on the buck to state governments? They should go ahead and bring fuel under GST. Headroom has been created for Rs.25 per litre cut. If brought under GST, fuel prices will immediately decline," he said.

Summing up, Chidambaram said the fuel price hike was "nothing but a case of fleecing the helpless consumer."

"There is widespread anger about artificially-fixed prices of petrol, diesel and LPG. There is absolutely no reason why prices should be higher today than what they were in May-June 2014. It is nothing but a case of fleecing the helpless consumer."

In May, common man was left troubled by skyrocketing fuel prices, which disrupted daily life.

Citizens batted for petrol and diesel to be brought under the GST, in anticipation of a reduction in prices.

However, the Indian Oil Corporation on Friday notified that prices for petrol and diesel have fallen by 21-22 paise per litre and 15-16 paise per litre respectively in Delhi, Kolkata, Mumbai and Chennai (compared to the previous day's rates)