New Delhi: The government has announced an increase in windfall tax on the export of diesel and aviation fuel (ATF). Apart from this, the duty on domestically produced crude oil was also increased. The Finance Ministry informed about this increase in a notification on Saturday. Now the windfall profit tax on the export of diesel has gone up to Rs 10.50 per liter. It will also attract a road and infrastructure cess of Rs 1.50. That is, the total tax on the export of diesel has now become Rs 12 per liter. Whereas on ATF, now this tax will be Rs 3.50 per liter.
At the same time, it was announced to increase the duty on domestically extracted crude oil by Rs 3,000 to Rs 11,000 per tonne. The new rates will be applicable from Sunday i.e. today. Earlier, the windfall tax was cut in two consecutive review meetings. On October 2, the Center reduced the windfall tax on domestic crude oil from Rs 10,500 per tonne to Rs 8,000 per tonne. This tax was abolished on the export of fuel jets and it was based on the export of diesel. However, in view of the recent increase in global crude oil prices, this time it was decided to increase the duty on crude oil, diesel, and ATF.
These companies will be affected
Private refinery companies Reliance Industries and Naira Energy are among the major exporters of diesel and ATF from the country, while state-owned ONGC and private sector Vedanta Ltd. domestically produce crude. The windfall tax on the export of petroleum products was first imposed on July 1, 2022. Significantly, this tax has already been removed from petrol.
Steps were taken after the decision of OPEC countries
Let us tell you that on 6 October, the Group of Oil Exporting Countries (OPEC+) announced that they will cut their production by 2 million barrels per day. This is the biggest cut since 2020. After this, the price of crude oil in the international market reached close to $100 with a sharp jump. However, it is a bit soft now. Brent crude is currently trading at $ 91.63 per barrel and WTI at $ 85.6 per dollar.
