बलजीत सिंह शेखावत
Following this government decision, the export duty on diesel has been increased from ₹13.5 to ₹14 per litre.
Similarly, the duty on ATF has been raised from ₹9.5 to ₹12.5 per litre. However, there has been no change in the export duty on petrol.
Export Duty on Diesel, ATF Hiked, Know Its Impact on You
The Finance Ministry has hiked the Special Additional Excise Duty (SAED) on diesel and ATF. This decision comes as crude prices are declining in the international market.
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HIGHLIGHTS
- Export duty on diesel increased from ₹13.5 to ₹14 per litre.
- Duty on Aviation Turbine Fuel (ATF) raised from ₹9.5 to ₹12.5 per litre.
- The hike is based on the average international prices of the last two weeks.
- Current crude oil prices have fallen to around $80 due to hopes of a US-Iran peace deal.
New Delhi | The Ministry of Finance has announced an increase in the export duty on diesel and Aviation Turbine Fuel (ATF). These new rates have become effective from Tuesday. This step has been taken at a time when crude oil prices are showing a downward trend in the international market.
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Why was the export duty increased?
It is important to understand the reason behind this hike. This export duty, also known as Special Additional Excise Duty (SAED), is revised every 15 days.
It is determined based on the average of international oil prices over the last two weeks. Since crude oil prices were higher in the last fortnight, the duty has been increased this time.
This hike is based on the average prices of the last two weeks, not on the current falling prices.
State of Crude Oil in the International Market
On the other hand, crude oil prices are softening due to the possibility of a peace deal between the US and Iran.
On Tuesday, WTI crude was trading at $80.68 per barrel and Brent crude at $82.95 per barrel. A few weeks ago, these prices were at the $95 level.
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What will be the impact on the domestic market?
This duty is levied only on the export of oil. It does not directly affect the retail prices of petrol and diesel sold in the country.
This measure is taken to control the windfall profits earned by oil companies. In India, petrol and diesel prices vary in different cities due to the VAT imposed by the states.
Experts believe that if the US-Iran deal is successful and the decline in crude oil prices continues, SAED may be reduced in the coming weeks. For now, domestic prices remain stable.
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