The government’s move to reduce excise duty on petrol and diesel will result in a revenue loss of approx $Rs 7,000 crore in 15 days,” CBIC Chairman Vivek Chaturvedi said on Friday.
Step: Reducing customs duties on gasoline and diesel by a percentage $10 per liter – reduces oil companies’ losses amid the ongoing conflict in the Middle East. The move will also ensure local availability of diesel and aviation turbine fuel (ATF), Chaturvedi said during a press conference.
The chief tax official said that the rebate on petrol and diesel is aimed at reducing the shortfall in recovery of oil marketing companies and ensuring that fuel prices do not rise for the common man.
The government also imposed export duties of $ $21.5 per liter on diesel and $29.5 per liter on ATF to meet local demand.
Read also: Will gasoline and diesel prices fall after the government cuts customs duties amid the Iran war? The big question has been answered
Additional duties on exports will be met, Chaturvedi said $1,500 crores to the exchequer within two weeks.
According to industry estimates, the impact of reducing tariffs will lead to a loss $1.75 million crores annually.
What did the ministers say about reducing taxes?
In a post on X, Finance Minister Nirmala Sitharaman said that the reduction in customs duties “will provide protection to consumers from rising prices.”
She said that the government is always keen to protect citizens from fluctuations in supply and costs of basic goods.
“Furthermore, customs duties have been imposed on diesel exports in $21.5 per liter and at ATF $29.5 per litre. This will ensure sufficient availability of these products for local consumption.”
Union Petroleum Minister Hardeep Singh Puri said global crude oil prices rose to their highest levels over the past month from around $70 per barrel to around $122.
Read also: Does the Strait of Hormuz affect your wine? Beer prices rise as India experiences a gas crisis Here’s how to connect everything
He added, “As a result, gasoline and diesel prices rose for consumers around the world. Prices rose by about 30 to 50 percent in Southeast Asian countries, 30 percent in North American countries, 20 percent in Europe, and 50 percent in African countries.”
The war in the Middle East, which will last 30 days on Saturday, has caused global oil prices to rise by 50 percent to more than $100 a barrel. According to estimates, at the current global crude oil prices, gasoline prices should have increased $26 liters and diesel in it $81.90.
Current petrol price in delhi $94.77 per liter, while diesel $ $87.67.
