Export duty hike on petrol, diesel: Here’s how it will impact fuel prices, domestic customers

New Delhi: The Central government, on Friday (July 1), announced an increase in the export duty on petrol, diesel, and Aviation Turbine Fuel (ATF). To be precise, the government has increased the export duty on petrol and diesel by Rs 5 per litre and Rs 12 per litre, respectively. On the other hand, the levy on ATF has been hiked by Rs 6 per lire. 

On the announcement, Finance Minister Nirmala Sitharaman said, "phenomenal profits" made by some oil refiners on exporting fuel at the expense of domestic supplies had prompted the government to introduce an export tax on petrol, diesel and ATF. The FM also noted that the windfall tax imposed on record profits of domestic oil producers will be reviewed every fortnight to calibrate them if the need arises. 

Will export duty hike impact petrol, diesel prices in India? 

The recently announced increase in the export duty on petrol and diesel is not going to have any direct impact on fuel prices in India. This means that customers buying petrol and diesel need not worry about a change in fuel prices. (ALSO READ: Centre to review export, windfall oil tax every fortnight: FM) 

India buys crude oil from different places from "cost-effective" options and also reduces excise duty so that the cost of petrol and diesel remains low and the burden on the ordinary citizen is less, she added. (Bill Gates shares his resume from 1974 on LinkedIn, terms today’s CV as better; netizens react) 

"But with all these being done, if oil is not being available and they are being exported, good they are exported but exported with such phenomenal profits. Good for earning profits, but extraordinary times. We need at least some of it for our own citizens and that is why we have taken this twin-pronged approach.

In addition, a tax of Rs 23,250 per tonne has also been announced on domestically produced crude oil. The new taxes, according to Revenue Secretary Tarun Bajaj, will apply to SEZ units.