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Centre Raises Taxes On Export Of ATF, Diesel And Petrol; Windfall Tax On Domestic Crude Oil

It has imposed Rs 6 per litre tax on exports of petrol and ATF and Rs 13 per litre on exports of diesel

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The Centre on Friday raised taxes on the export of diesel, petrol and aviation turbine fuel (ATF) and also announced an additional windfall tax on gains made by domestic refineries. 

It has imposed Rs 6 per litre tax on exports of petrol and ATF and Rs 13 per litre on diesel exports.

An additional Rs 23,320 per tonne tax on domestically produced crude oil has also been imposed to take away windfall gains accruing to producers from high international oil prices.

However, export-focused refineries have got an exemption from the new tax imposition. The latest move demands that exporters first sell 30 per cent of their diesel output in the domestic market.

Reliance shares slipped more than 4 per cent off day's highs following the windfall tax announcement. ONGC is also seeing a sharp decline in prices.

Mangalore Refinery and Chennai Petroleum were also down about 8 per cent each. 

The refining margins of petroleum refiners were nearly $30 per barrel due to the cheap inflow of oil from Russia and the high demand for petroleum products from Europe, making exports lucrative.



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crude oil refineries exports petrol diesel