Tax abolished on petrol exports:Diesel export duty increased by ₹3 to ₹11.50; ₹11 tax imposed on ATF

The central government has changed the tax rules for selling oil abroad. Companies will now not have to pay any tax on selling petrol abroad, whereas a tax of ₹2.50 per litre was charged earlier. At the same time, the export duty on diesel has been increased by ₹3 and that on aviation fuel (ATF) by 50 paise. Companies will now have to pay ₹11.50 in tax on selling diesel abroad and ₹11 on jet fuel. The government has taken this step amid the ongoing tensions in the Middle East to ensure that there is no shortage of petrol or diesel in India. The government wants companies to meet the needs of people in India first instead of selling oil abroad. Relief for the public; petrol and diesel prices will not rise International crude oil prices have risen because of the war in the Middle East, but the government has kept petrol and diesel prices stable in the country. A change in the export tax will not affect the public’s finances, and the domestic oil supply will also remain uninterrupted. The government determines this tax every 15 days after reviewing international prices. Export levy rules were implemented in March Crude oil prices had risen in the international market because of the war in the Middle East. Seeing higher profits abroad, Indian oil companies had started selling oil overseas instead of in the domestic market. To prevent this and maintain the supply of petrol and diesel in the country, the government imposed an export tax in March. Danger on the old route carrying 45% of the oil, India changed course Before the war, India imported 45% of the crude oil it needed through the Strait of Hormuz. The movement of ships along this route became dangerous because of the war in the Middle East. To ensure that supplies did not stop, India has now started importing oil from other countries. What is windfall tax? When crude oil prices suddenly rise sharply in the global market, oil companies in the country begin making huge and unexpected profits by selling petrol and diesel abroad. The government imposes a special tax on companies to bring a share of this extra profit into the national treasury. This is called windfall tax.