Govt Increases Export Duty On Petrol By ₹6 Per Litre, Diesel By ₹13 Per Litre
Mumbai: The government on Friday increased the export duty on petrol, diesel, and aviation turbine fuel (ATF). Export duty on petrol has been raised by ₹6 per litre and ₹13 per litre on diesel.
An increase in export duty on the various fuels will not increase domestic fuel prices.
The government has directed exports to sell 50% of their petrol in the domestic markets and 30% of diesel as well. This move will also help the government as it seems to be benefiting from rising crude oil prices.
Besides this, another notification by the government revealed that it has imposed an additional tax of Rs 23,230 per tonne on domestically produced crude oil to offset windfall gains to producers from higher international oil prices. With this move, the government can get Rs 67,425 crore annually on 29 million tonnes of domestically produced crude, news agency PTI reported.
The tax on exports is an attempt to benefit from higher crude oil prices, while private sector refineries benefit heavily from exports of the fuel to markets such as Europe and the US. Domestically produced crude oil is taxed after local producers get windfall gains from the jump in international oil prices.
Domestic petrol and diesel prices have been stable since May 21 when the government announced a price cut. Domestic prices are likely to remain low as the taxes announced by the government today do not have any impact on domestic fuel prices.
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