₹3 per liter tax imposed on petrol exports:Duty reduced on diesel jet fuel, decision taken to prevent shortage in India

After an increase of up to ₹3 per liter in petrol and diesel prices in the country, the central government has made changes to the rules for oil companies. The government has imposed a windfall tax of ₹3 per liter on petrol exports. Tax on diesel and jet fuel (ATF) has been reduced. Due to the ongoing war between US-Israel and Iran, crude oil prices have remained above $100 per barrel for a long time now. This decision has been taken to ensure there is no shortage of oil in India. Simple answers to every question related to this matter Question 1: What new rule has the government made regarding petrol? Answer: The government has decided that if any Indian company exports petrol to other countries instead of selling it in India, it will have to pay an additional tax of ₹3 per liter to the government. This is the first time such a tax has been imposed on petrol since tensions began in West Asia, so that companies send less petrol outside the country. Question 2: What changes have been made to diesel and aircraft fuel? Answer: The government has increased strictness on petrol, but has reduced the tax on export of diesel and jet fuel (ATF). The tax on sending diesel abroad has been reduced from ₹23 to ₹16.5 per liter. Meanwhile, the tax on aircraft fuel has been reduced from ₹33 to ₹16 per liter. How much has exporting changed for oil companies now Question 3: Why do companies want to export oil abroad instead of selling it in India? Answer: At this time, a war is going on between America, Israel, and Iran. Due to this tension, the price of crude oil worldwide has increased from $73 to over $100 per barrel. When oil becomes so expensive in foreign markets, private oil companies see more profit in selling oil abroad compared to India. To prevent them from sending all the oil outside in pursuit of higher earnings, the government has taken this step. Question 4: What is the government’s thinking behind increasing tax on petrol and reducing it on diesel? Answer: The government’s primary objective is to ensure that there is no shortage of petrol for the people of India. By imposing tax on petrol, companies will avoid sending it abroad and the supply within the country will remain adequate. On the other hand, by reducing tax on diesel and jet fuel, the government has provided some relief to companies, so that their business remains balanced and they don’t suffer heavy losses. Question 5: What impact will this decision have on the oil prices available at petrol pumps in our city? Answer: This decision will neither increase nor decrease the prices of petrol-diesel in your city. The Finance Ministry has made it clear that this new tax is applicable only on oil being exported abroad. There has been no change in the tax rates on petrol-diesel sold for common public consumption within India. Question 6: But what about the ₹3 increase in petrol-diesel on Friday morning? Answer: Just before this decision to impose export tax, on Friday morning, government oil companies had increased the prices of petrol and diesel by up to ₹3 per liter across the country. This happened because purchasing expensive crude oil from the international market was becoming burdensome for the companies. The prices have been increased in India to compensate for that increased cost. Along with this, CNG has also become ₹2 per kg more expensive. Question 7: What is ‘Windfall Tax’ that the government has imposed on petrol? Answer: In simple words, it can be called ‘tax on sudden profits’. When a company starts making huge profits not because of its own merit, but due to global circumstances (such as war or some crisis), the government takes a portion of that profit as tax. This is called Windfall Tax. Its purpose is to use this excess profit of companies for the benefit of the general public. Knowledge Part: What is the Hormuz Route, whose closure has made oil expensive It is a very narrow and important passage in the middle of the sea, located between Oman and Iran. About 20% of the world’s crude oil goes through this route via ships to different countries. Due to the America-Iran war, this route has been closed, which has stopped the oil supply and suddenly oil prices have increased all over the world.