Petrol diesel price update: Govt cuts excise duty by Rs 10 per litre; export benefits withdrawn
Petrol diesel price update: In what may come as a major relief for consumers in the coming days, the government on Friday cut excise duty cut on petrol and diesel by Rs 10 per litre. It also withdrew export tax benefits on petrol, high-speed diesel and aviation turbine fuel (ATF) under the amended Central Excise Rules 2017. The development has been confirmed by Finance Minister Nirmala Sitharaman amid the ongoing West Asia crisis.
The decision is also being seen as major step towards controlling fuel prices in India, Nirmala Sitharaman said Centre is committed to protecting its citizens from global supply shocks and price volatility of essential commodities.
Besides the duty cut for domestic consumption, the government has imposed fresh export duties: Rs 21.5 per litre on diesel and Rs 29.5 per litre on ATF.
The Ministry of Finance has also made an amendment to key provisions under Rules 18 and 19 of the Central Excise Rules, so that exporters of petrol, diesel and ATF are no more eligible for tax rebates or duty-free export benefits that were earlier available. These provisions had allowed companies to either claim refunds on excise duty or export fuel without paying duty upfront.
The latest notification effectively blocks these benefits by inserting a specific exclusion clause for the three fuels. The amendment has been issued under Section 37 of the Central Excise Act, 1944.
The decision come into effect immediately, with no transition period for exporters.
- With inputs from agencies
