Excise Duty Hike: Excise duty increased on the export of petrol and diesel, know whether it will benefit you or harm you?

Posted on 1st Jul 2022 by rohit kumar

The Government of India has decided to increase the excise duty on the export of Airplane Fuel (ATS) and Petrol-Diesel. According to the notification issued by the government, it has been decided to increase the export excise duty on petrol by Rs 6 per liter and on diesel by Rs 13 per liter. At the same time, the central export excise duty on the export of airplane fuel ATF has been increased by Rs 6 per liter.

 

 

The government has also decided to impose an additional tax of Rs 23,230 per tonne on domestically produced crude oil to control the windfall gains to oil producers after rising oil prices in the international market. According to a notification issued by the Finance Ministry, the government has also increased the customs duty on gold from 10.75 percent to 15 percent. On behalf of the government, it has been said that this step has been taken to help reduce the current account deficit.

 

What will be the effect on the common man?

 

After this decision of the government, a debate has started on whether this decision will also affect the prices of petrol and diesel available to the common man? The answer to the question has been given in the notification issued by the government itself. In the information issued by the government in this regard, it has been said that this decision will not affect the common man. This decision of the government will only and only on petroleum products exported outside the country.

 

The government's decision will not have any effect on the common man

 

There will be no direct impact of increasing this export excise duty on the common man. With this increased tax by the government, it is possible to keep the prices of petrol and diesel under control. If the charge of export duty has been increased, then it means that now it will become more expensive to export these things outside the country than before.

 

With this decision, the export of petroleum products is expected to reduce, at least. With this decision of the government, it will be ensured that there is no shortage of petroleum products in the country. Because of this, this decision of the government will prove beneficial for the common man and not loss.

 

Private companies are earning big profits by exporting oil

 

Let us tell you that at present, oil companies were importing crude oil domestically, refining it, and exporting it to foreign markets, due to which their export was getting. This could have created a threat of a shortage of these petroleum products within the country. The government has tried to save the situation from worsening in time by deciding to increase the excise duty on the export of petrol and diesel from the country.

 

One thing is certain here that this decision of the government will not increase any burden on the common customer. Since the companies were exporting more and earning foreign exchange, but by doing so, oil was falling short of the domestic market and there was a risk of an oil crisis in some states of the country, so the government has taken this decision.

 

An increase in export duty will not affect the prices of petrol and diesel

 

Excise duty levied on exports is different from normal excise duty. This will not have any effect on the domestic prices of petrol and diesel. However, due to reduced exports, many big companies may see a reduction in profits. For this reason, as soon as the news of increasing excise duty on exports by the government came on Friday morning, there has been a big fall in the stock of Reliance Industries. The shares of Reliance registered a fall of up to 7 percent on Friday. RIL has broken down to around Rs 170 per share.

 

This will be the advantage of increasing the export excise duty

 

After the decision of the Central Government to increase the export excise duty, the supply of fuel in the country will increase. The shortage of fuel which was seen in some states of the country in the recent past will not be like that. Market experts believe that the government's decision to increase excise duty on exports will also help in controlling the prices of petroleum products in the country.

 

Also Read: Petrol Diesel Price: Petrol-Diesel prices have not changed even today, know how much are the prices in your city