Centre should file reply to PIL on reducing fuel price: Madras HC

CHENNAI: The Madras High Court directed the Union government to file a response to the public interest litigation (PIL) seeking to reduce the prices of petrol, diesel, gas and oil by bringing down the taxes under goods and services tax (GST).

The first division bench of acting Chief Justice D Krishnakumar and Justice PB Balaji directed the Ministry of Petroleum and Natural Gas and the finance ministry to file a response to the PIL and posted the matter after four weeks. The PIL was moved by advocate C Kanagaraj, seeking to include the price of petrol, diesel and gas under the cover of GST to reduce its cost.

The petitioner said that increasing fuel prices significantly impacts consumers and industries, primarily through transportation costs and service fees, which can lead to inflationary pressure.

He also submitted that the cascading effect of higher fuel prices leads to higher consumer prices as the transportation costs of all essential goods will ascend. It directly affects people's purchasing power and can ultimately lower their living standards, he said.

He contended that there are widespread outcries all over India to bring the prices of petrol and diesel under the GST regime to reduce the price hike.

The petitioner also submitted that even if the crude oil price drops in the international market, the private oil companies in India sell the fuel without any price reductions.

He also stressed the need to migrate from fossil fuels to alternative fuels like green energy to reduce fuel prices and environmental impacts.