In May, the government will reduce excise duty on petrol and diesel (Excise duty cut on Petrol-Diesel) Announced. On July 1, the government imposed export duty on petrol, diesel and jet fuel from the domestic market. (Export duty on Petrol and Diesel) Announced. Experts say the reduction in excise duty on petrol and diesel will help the government recover about 85 per cent of the loss in revenue.
On May 21, the government announced a reduction in excise duty on petrol by Rs 8 per liter and on diesel by Rs 6 per liter. It was said at the time that the reduction in excise duty would cost the government Rs one lakh crore annually.
Here on July 1, the government announced the imposition of export duty on petroleum exported by oil companies. Exports of one liter of petrol cost Rs. 6, on jet fuel exports Rs. 6 and Rs. 13 import duty has been imposed. In addition, an additional tax of Rs 23,250 per tonne has been announced on crude oil production in the domestic market.
Rs 52,000 crore will be available in the current financial year
By levying tax on crude oil production of Cairn Oil & Gas of public sector ONGC and Oil India Ltd. and private sector Vedanta Ltd. and domestic production of 29 million tonnes of crude oil, the government has to pay Rs. 67,425 crore. According to the report, the government will get about Rs 52,000 crore in the remaining nine months of the current financial year.
20,000 crore from export duty
India exported 2.5 million tonnes of petrol, 5.7 million tonnes of diesel and 7.97 lakh tonnes of jet fuel in April and May. After export tax, if exports remain even one-third, the government will get about Rs 20,000 crore from export duty in the first nine months of the current financial year. This will bring a total of Rs 72,000 crore to the exchequer.
Only exported from Jamnagar refinery
Another source said that Reliance Industries Ltd operates a refinery of 352 million tonnes per annum in Jamnagar, Gujarat for export alone. Exports to Jamnagar refinery will continue despite the new tax. Apart from this, some exports are also expected from the refinery with an annual capacity of 33 million tonnes. However, this refinery is to meet local needs.
Reliance exports on a large scale
Reliance’s Fuel Retailing Joint Venture with BP operates 1,459 petrol pumps out of 83,423 petrol pumps in the country, sources said. Even after meeting the requirement of this petrol pump and selling a little oil to public sector companies, it will have a surplus for exports. Similarly, Rosneft-backed Naira Energy operates a 20 million tonne refinery at Vadnagar in Gujarat. Which operates 6,619 petrol pumps. Less than 12 million tonnes of the company’s total production is spent annually to meet the demand for petrol, diesel and ATF locally.
. Source