Modi government's U-turn in 19 days: This tax has been removed from petrol-diesel, know whether you will benefit or not?

The central government has banned the export of petrol-diesel and aviation fuel on the last date. A heavy cess was imposed on it on July 1. However, due to the fall in crude oil prices in the global market, this tax has been cut once again. The biggest benefit will be the petrol exporting companies. Keeping in mind the fall in crude oil prices in the global market, the central government has withdrawn the heavy tax imposed on exports 3 weeks ago. The government has cut the cess on diesel and jet fuel while completely scrapping the cess on petrol.

In fact, this tax was imposed to curb the increase in the retail price of petrol-diesel in the domestic market in view of the huge increase in crude oil prices in the global market. The aim was to enable companies to consume fuel refined here in the domestic market instead of exporting it. This would maintain supply in the country and reduce pressure on prices. However, oil companies have started protesting this additional tax since its implementation.

According to the government notification, the additional tax of Rs 13 per liter applied on diesel and aviation fuel has been cut by Rs 2. Meaning, companies will now have to pay a cess of Rs 11 for exporting diesel and jet fuel. While the tax of Rs 6 per liter applied on the export of petrol has been completely abolished.

Big cut in tax on domestic crude products

The government also imposed a huge tax on the export of crude oil produced in India, which has now been drastically cut. The government has reduced the tax on domestic crude exports by 27 percent to Rs 17,000 per tonne. The tax was implemented to curb the export of domestic crude so as to maintain the supply of fuel in the Indian market when its prices were rising rapidly in the global market.