"Petrol and diesel should have been brought under the Goods and Services Tax. I asked officials during a presentation if we bring fuel prices under GST will it benefit the states or not.
"They said 'yes', they will benefit," Mr Gadkari said at a news conclave in Delhi on the four years of Prime Minister Narendra Modi's government.
However, he said the states were wary of losing revenue on account of taxes they collect from fuel prices and liquor.
"It will be good if fuel prices are brought under GST. This will not only reduce the fuel prices but will also increase the government's revenue."
The minister said fuel prices were surging because of international crude oil rate.
"Earlier, we were giving subsidy on the import (of fuels). When the rates came down, the subsidy was removed. We are a part of a global economy...The price of petrol and diesel are increasing due to rise of their price in international rates."
He said the money that was saved from removing subsidy on fuel allowed the government to give free Liquid Petroleum Gas (LPG) connections to eight crore families across India.
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