New Delhi :- In a recent move, the government has made significant adjustments to the taxation structure surrounding petroleum products. These changes are set to come into effect starting September 16 and are expected to impact both domestic and international aspects of the industry.
One of the key changes involves the increase in the special additional excise duty (SAED) on domestic crude petroleum. Previously set at Rs 6,700 per tonne, the SAED will now stand at Rs 10,000 per tonne. This hike is likely to have wide-ranging effects on the domestic crude oil market.
In a bid to promote exports, the government has decided to reduce the duty on the export of diesel. Currently set at Rs 6 per litre, the duty on diesel exports will be lowered to Rs 5.50 per litre. This reduction is expected to make Indian diesel more competitive in the international market, potentially boosting export volumes.
Furthermore, the duty on aviation turbine fuel (ATF) will also see a reduction. Effective from the upcoming Saturday, the ATF duty will be reduced to Rs 3.5 per litre, down from the previous rate of Rs 4 per litre. This change is expected to benefit the aviation industry by reducing operating costs for airlines.
These adjustments in taxation reflect the government’s efforts to balance domestic needs with international competitiveness in the petroleum sector. While the increase in SAED may impact the pricing of domestic crude oil, the reductions in duties on diesel and ATF aim to bolster India’s position in the global energy market.
These changes are expected to have a notable impact on various stakeholders in the petroleum industry and will be closely watched by both domestic and international players. As these new rates take effect, the industry will adapt to the evolving landscape, and their implications will become clearer in the coming months.
