The export duty on aviation turbine fuel (ATF) has been hiked to Rs 2 per litre from 0 while the export duty on diesel was hiked by two rupees to Rs 7 per litre from Rs 5 per litre. The changes took effect on August 19, 2022. For the past two weeks ATF had not attracted any additional tax.
The move comes close on the heels of the significant correction in crude prices. Over the last 6 months, crude prices have come off their highs.
The Central Board of Excise and Customs (CBIC), in its notification, has reduced the windfall tax oncrude produce in India to Rs13,000 a tonne from Rs.17,750 a tonne earlier, a move that will come as a relief for producers like ONGC and Vedanta.
The sale of crude oil produced in India has been subject to an additional duty of 17,750 per tonne for the past two weeks. Centre has also revised the cess on export of aviation turbine fuel (ATF) to Rs.2 per litre. For the past two weeks, ATF exports did not attract the cess. The special additional excise duty on export of diesel has been increased from Rs.5 to Rs.6 per litre, and including a cess it would be Rs.7 per litre.
A windfall tax of Rs.23,250 per tonne was imposed on the sale of domestic crude.
In a written response to Lok Sabha, the Minister of State for Petroleum and Natural Gas,Rameswar Teli had earlier pointed out that that the conventional hydrocarbon resources that have been discovered so far in the country is estimated to be approximately 12 billion tonnes of oil and oil equivalent of gas. Out of this, recoverable resources are estimated to be 4.2 billion tonnes of which about 2.6 billion tonnes of oil and oil equivalent of gas has already been produced.
The consumption of petroleum products and natural gas in the country, during FY2022, was 204.23 mmt and 63.91 billion cubic meter (BCM) respectively.During FY2022, 22.8% of total requirements of crude oil and gas of the country were met through domestic production.
