Centre imposes export tax on petrol, diesel, ATF
The government imposed a Rs 6 per litre tax on the export of petrol and ATF and a Rs 13 per litre tax on the export of diesel.
FollowThe government imposed an export tax, on Friday, on petrol, diesel, and jet fuel (ATF), shipped overseas by companies like Reliance Industries Ltd, and a windfall tax on crude oil produced locally by companies like ONGC and Vedanta Ltd.
According to finance ministry notifications, the government imposed a Rs 6 per litre tax on the export of petrol and ATF and a Rs 13 per litre tax on the export of diesel.
It also imposed an additional tax of Rs 23,250 per tonne on domestically produced crude oil.
The crude oil levy, which comes on the heels of record earnings by state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), and private sector Cairn Oil & Gas of Vedanta Ltd, will bring the government Rs 67,425 crore per year on 29 million tonnes of crude oil produced in India.
Following Russia's invasion of Ukraine, oil refiners, notably Reliance Industries and Rosneft-backed Nayara Energy, killed the exporting fuel to deficit regions such as Europe and the United States.
The refiners are said to have processed discounted Russian crude oil after it was shunned by the West and exported fuel produced from it to Europe and the United States.
The export ban is also intended to shore up domestic supplies at petrol pumps, which had dried up in states such as Madhya Pradesh, Rajasthan, and Gujarat because private refiners preferred exporting fuel to selling locally.
Exports were preferred because dominant PSU retailers capped retail petrol and diesel prices far below cost.
This meant that private retailers with less than 10 per cent of the market had to sell fuel at a loss or risk losing market share if they sold at a higher cost.
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