Cess of Rs.23,250 per tonne has been Imposed on Crude
Reetu | Jul 3, 2022 |
Cess of Rs.23,250 per tonne has been Imposed on Crude
The Government of India Imposed a Cess of Rs.23,250 per tonne on crude and Special additional excise duty/Cesses levied on exports of petrol and diesel at the rate of Rs.6 per litre on Petrol and Rs.13 per litre on diesel. Also, SAED of Rs.6 per litre imposed on exports of Aviation Turbine Fuel.
Recently, the cost of crude has increased significantly. Domestic crude producers sell their product to domestic refineries at market parity rates. The domestic crude producers as a result are benefiting unexpectedly. This has led to the imposition of a cess on crude oil of Rs. 23250 per tonne. This cess would not apply to crude imports.
Domestic producers sell crude at international parity rates.
The price of domestic petroleum goods and fuel will not be negatively impacted by this cess in any way.
Small producers will also not be required to pay this cess if their annual oil production in the previous financial year was less than 2 million barrels.
While the price of oil has risen significantly in recent months, the price of HSD and gasoline has soared much more. These items are exported by refiners at very high prices that are currently in effect worldwide. It has been observed that certain refiners are drying out their pumps in the local market as exports become more lucrative.
Cesses of Rs. 6 per litre for gasoline and Rs. 13 per litre for diesel have therefore been imposed on their exports.
All diesel and gasoline exports from the nation would be subject to these cesses.
The aforementioned measure has no effect on domestic retail prices of HSD and Petrol because it has only been applied to exports.
In addition, the DGFT has imposed an EXPORT POLICY requirement that requires exporters to certify, at the time of export, that 50% of the quantity specified in the shipping bill has been or will be supplied in the domestic market during the current FY.
The domestic retail prices of gasoline and diesel would not be negatively impacted by these actions. As a result, domestic retail prices wouldn’t alter. These actions will also guarantee domestic petroleum product availability.
A special additional excise duty (SAED) of Rs 6 per litre has been imposed on exports of Aviation Turbine Fuel.
ATF has seen a dramatic increase in price on the global market, similar to HSD and Petrol. Accordingly, a Rs 6 per litre cess has been imposed on the export of ATF based on the same justification as indicated above for diesel and gasoline.
The cost of domestic aviation will not be negatively impacted by this policy.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
