Petrol-Diesel News: Government Hikes Fuel Export Tax By Up To Rs 11, Jet Fuel Also Gets Costlier

New Delhi: The central government has again changed the windfall tax on petrol, diesel and aviation turbine fuel i.e. jet fuel. According to the notification of the Finance Ministry, the new rates have come into effect from August 3. The government says that this decision has been taken so that there is no shortage of fuel in the domestic market and to maintain the balance of fluctuations in crude oil prices.

How much has the export tax on petrol, diesel and ATF increased?

After the new rate, now more tax will have to be paid on exports.

• Petrol: Earlier it was Rs 2.5 per litre; now it has increased to Rs 3.5 per litre.
• Diesel: Earlier it was Rs 15.5 per litre; now it will be directly Rs 25.5 per litre.
• Jet fuel i.e. ATF: Earlier it was Rs 14.5 per litre; now you will have to pay Rs 22 per litre.

Why did the government increase the windfall tax?

The government argues that the prices of crude oil are continuously going up and down in the international market and there is also geopolitical tension in the world. In such a situation, this step has been taken so that the supply of petrol and diesel in the country is maintained and companies do not earn abnormal profits from exports.

Will petrol and diesel become expensive for common people?

This tax will not directly affect your pump. This tax will be imposed only on those oil companies which sell petrol, diesel and ATF to other countries. This will not have any impact on imported fuel.

Which companies will be affected?

Companies like IOC, BPCL and HPCL, which export their fuel abroad, will now have to pay duty at the new rate. This means that Indian fuel may now become a little costlier for foreign buyers.

Why do the rates of windfall tax change every 15 days?

The government checks the international crude price, refining margin and fuel stock in the country every 15 days. Windfall tax is increased or decreased accordingly. The objective is the same - there should be no shortage of fuel in the country and the policy should be balanced according to the global situation.

What does the government say?

The government has clearly said that the purpose of the windfall tax is to ensure the availability of fuel in the domestic market. When international rates increase, it is also necessary to curb earning extra profits from exports. New rates have been implemented under this policy. In short, petrol for your bike and car will not be expensive now, but it will definitely affect the pockets of the exporting companies.