The central government has changed the rules of tax on selling oil abroad. Now companies will not have to pay any tax on selling petrol abroad, which earlier used to be ₹2.50 per litre. At the same time, export duty on diesel has been increased by Rs 3 and on aviation fuel (ATF) by 50 paise. Now companies will have to pay tax of Rs 11.50 on selling diesel abroad and Rs 11 on jet fuel. The government has taken this step so that there is no shortage of petrol and diesel in India amid the ongoing tension in the Middle East. The government wants that companies should first fulfill the needs of the people of India instead of selling oil abroad. Relief to the general public, prices of petrol and diesel will not increase. Due to the war in the Middle East, crude oil has become expensive at the international level, but the government has kept the prices of petrol and diesel stable in the country. The change in export tax will not have any impact on the pockets of the general public and the supply of oil in the country will also remain intact. The government decides this tax every 15 days by looking at international prices. Export levy rules were implemented in March due to the war in the Middle East, the prices of crude oil had increased in the international market. Seeing higher profits abroad, Indian oil companies started selling oil outside the country instead of within the country. To stop this and maintain the supply of petrol and diesel in the country, the government had imposed export tax in March. Danger in the old route carrying 45% oil, India changed the route. Before the war, India used to import 45% of its crude oil requirement through ‘Strait of Hormuz’ sea route. Due to the war in the Middle East, the movement of ships on this route became dangerous. Therefore, thinking that the supply will not stop, India has now started importing oil from other countries. What is windfall tax? When the price of crude oil suddenly increases in the world market, the country’s oil companies start making huge and unwanted profits by selling petrol and diesel abroad. To bring some part of this extra profit of the company to the country’s treasury, the government imposes a special tax on them, which is called windfall tax.
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Tax on selling petrol abroad abolished: Export duty on diesel increased by ₹ 3 to ₹ 11.50; ₹11 tax on ATF
