Review of new tax on oil every 15 days, tax imposed to maintain domestic supply – Finance Minister

Review of tax on crude every 15 days

Image Credit source: PTI

The government has imposed a tax of Rs 6 per liter on the export of petrol and ATF and Rs 13 per liter on the export of diesel. Apart from this, an additional tax of Rs 23,250 per tonne has been imposed on the domestic production of crude oil.

The government will review the tax levied on crude oil, diesel, aircraft fuel every 15 days. Finance Minister Nirmala Sitharaman (Finance Minister) has given this information today. Today, the government has announced Reliance Industries (Reliance Industries) on Friday imposed tax on exports of petrol, diesel and aviation fuel (ATF) to other countries by companies like In fact, with Russia offering crude oil at cheaper rates, Indian buyers have increased their purchases from Russia manifold and with this the export of refinery products has also increased. Due to which the margins of these companies have increased, but on the other hand there have also been reports of shortage of oil in many places in the country. In view of this, the government has announced a new tax to control exports.

What is the statement of Finance Minister

The Finance Minister said that the situation is very different when oil prices across the world have gone out of control. He said that we do not want to ban exports, but we want that the supply of petroleum products in the country should be maintained. He said that in such a situation when the supply of oil in the country is being affected but on the other hand export continues with high profits, then we will have to take such a step so that the citizens of the country get some benefit. At the same time, on the performance of the rupee against the dollar, the Finance Minister said that the government and the Reserve Bank are monitoring the movement of the rupee. And the government knows how much a weak rupee can affect imports.

tax on oil exports

The government on Friday imposed tax on exports of petrol, diesel and aviation fuel (ATF) to other countries by companies like Reliance Industries Ltd. The windfall gains from locally produced crude oil by companies such as ONGC and Vedanta Ltd. have also been taxed. The Finance Ministry notification said that the government has imposed a tax of Rs 6 per liter on the export of petrol and ATF and Rs 13 per liter on the export of diesel. Apart from this, an additional tax of Rs 23,250 per tonne has been imposed on the domestic production of crude oil. The government will get Rs 67,425 crore annually by levying tax on crude oil production of public sector ONGC and Oil India Ltd and private sector Cairn Oil and Gas of Vedanta Ltd and domestically producing 29 million tonnes of crude. The export tax has been imposed as refineries such as Reliance Industries and Rosneft-backed Nayara Energy are making substantial profits by exporting fuel to regions like Europe and the US facing oil crunch in the wake of Russia’s attack on Ukraine. One of the objectives of levying export tax is to improve domestic supply at petrol pumps as states like Madhya Pradesh, Rajasthan and Gujarat are facing shortage of fuel and private refineries are giving priority to export of fuel rather than selling it locally. Huh.