Petrol Diesel Export Duty: On Saturday, the central government announced a significant change regarding petrol and diesel. A notification from the Finance Ministry revealed that the export tax on petrol has been eliminated. Meanwhile, the special additional excise duty on diesel exports has been raised by Rs 3 per liter. Additionally, the government will impose higher taxes on ATF exports, increasing it by 50 paise per liter.
No tax on petrol exports
With this new policy from the Central Government, exporting petrol is now entirely tax-free. Previously, exporters had to pay a tax of Rs 2.50 for each liter of petrol. In contrast, the tax on diesel exports has risen by Rs 3 per liter, bringing it to Rs 11.50, up from Rs 8.50 per liter. Furthermore, for ATF used in aircraft, the government will now charge Rs 11 per liter instead of Rs 10.50 per liter.
What impact does it have on the average person?
This decision from the Central Government’s Finance Ministry will not impact the average citizen. There will be no increase in domestic petrol and diesel prices. The changes will only affect petrol, diesel, and ATF sold outside of India, with companies facing higher taxes on diesel and ATF exports.
Why is there a tax on petrol and diesel exports?
The central government introduced the export duty on petrol and diesel back in March due to global uncertainties caused by the war. This measure was taken to ensure stable domestic supplies. It’s important to remember that prior to the conflict, India relied heavily on the Strait of Hormuz for a significant portion of its crude oil imports. However, disruptions in this route due to the war led to a major crisis for the country.
Currently, India sources crude oil from various other nations. Notably, India is home to some of the largest refinery companies in the world, with Reliance Industries having substantial refining capacity. As a result, these companies refine and export oil globally.