Strictness on oil export: To limit the profits of companies, tax increased from Rs 21.5 to Rs 55.5, a big decision of the central government.

digital desk- The Central Government has taken a big and important decision regarding the export of petroleum products. Under the new order issued by the Finance Ministry, the duty on export of diesel and aviation turbine fuel (ATF) has been increased significantly. This step is being considered an important strategic decision towards ensuring energy security and availability of fuel in the domestic market. According to the government, the duty on export of diesel has now been directly increased from Rs 21.5 per liter to Rs 55.5 per litre. This increase is more than double, which clearly indicates that the government now wants to limit exports and give priority to domestic supply. At the same time, tax on Aviation Turbine Fuel (ATF) used in airplanes has also been increased. Export duty on ATF has been increased from Rs 29.5 per liter to Rs 42 per litre.

Steps taken to increase domestic sales

Experts believe that this decision has been taken to control the situation when refinery companies start ignoring the domestic market in the greed of earning more profits in the international market. In fact, when fuel prices are high in the global market, companies give priority to exports, which may impact supplies within the country. This step of the government will make exports expensive for companies. This will motivate them to sell fuel in the domestic market, which will reduce the possibility of shortage of diesel and other fuels in the country. Availability of diesel is very important especially for agriculture, transport and industry sectors, hence the government is paying special attention to it.

Chances of relief to the general public

This decision may also affect the profits of oil companies. There may be a decrease in the earnings of companies due to increased tax on exports, but this is likely to provide relief to the general public, because prices will be kept under control due to stable supply in the domestic market. Meanwhile, a relief news has come out regarding petrol. The Finance Ministry has clarified that no new tax has been imposed on the export of petrol. Export duty on petrol will remain Nil as before. This means that at present the government is not worried about the domestic availability of petrol.