The government is likely to consider bringing petrol and diesel under the ambit of the GST (Goods and Service Tax).
The matter will be discussed by the GST Council during its next meeting scheduled to be held on Friday.
The GST Council, headed by union finance minister Nirmala Sitharaman, will examine the proposal after the Kerala High Court asked for the matter to be taken up.
Any change to the GST system would require an approval by three-fourths of the panel.
This comes when fuel prices are at the highest levels and consumers are taking a hit.
Inclusion of petrol and diesel under the ambit of the GST is expected to reduce the prices of petrol and diesel.
The panel would also probably look at increasing GST to 12% on some renewable equipments and to 18% on iron, copper and other metal ores and concentrates.