Govt increases export duty on crude oil, refined petroleum products

1 Jul 2022 , 11:44 AM

On Friday (01-07-2022), the government increased the export tax on fuel by Rs. 13/liter and on gasoline by Rs. 6/litre.

ATF, often known as jet fuel, now has a Re 1/litre higher export tariff. The goal of raising taxes, according to the finance ministry, is to make petroleum more widely available domestically. However, according to the statement made, it will not have an effect on domestic costs.

According to a separate government announcement, the government also imposed an extra tax of Rs 23,230 per tonne on locally produced crude oil to offset producers’ windfall profits from high international oil prices.

The export tax was implemented as a result of oil refineries, particularly those in the private sector, making significant profits by exporting petroleum to countries like the US and Europe.