Petrol-Diesel Price / The government took this big decision on tax - will petrol and diesel become cheaper?

Zoom News : May 16, 2024, 01:50 PM
Petrol-Diesel Price: There may be big news for the general public before the election results. The government has reduced the windfall tax on domestically produced crude oil from Rs 8,400 per tonne to Rs 5,700 per tonne. Earlier the government was continuously increasing the windfall tax. Now it is cutting taxes for the second consecutive time. This tax is levied in the form of Special Additional Excise Duty (SAED).

SAED on exports of diesel, petrol and jet fuel or ATF has been retained at 'zero'. CBIC i.e. Central Board of Indirect Taxes has said in one of its orders that the new rates are being made effective from May 16. Let us tell you that till May 16, the price of petrol in Delhi is Rs 94.72 per liter. Whereas diesel is available at Rs 87.62 per liter.

Tax was reduced for the last time on May 1

Let us tell you that after continuously increasing the tax, for the first time on May 1, the government had decided to reduce the windfall tax on crude oil. In that review, the windfall tax was reduced from Rs 9,600 per tonne to Rs 8,400 per tonne. Earlier, the windfall tax was being increased continuously. A month ago, the windfall tax was increased from Rs 6,800 per tonne to Rs 9,600 per tonne in the April 16 review, while it was increased from Rs 4,900 per tonne to Rs 6,800 per tonne in the first review this fiscal 

Tax was imposed for the first time in 2022

India first imposed the windfall tax on July 1, 2022, joining the list of countries that tax the profits of energy companies. Similarly, duty was also imposed on the export of diesel, petrol and aviation fuel. Many private refiner companies were exporting diesel, petrol and ATF instead of selling it in the domestic market to earn more profits. Windfall tax is also a type of tax imposed on exports. The government reviews it every fortnight and decides to increase or decrease it according to the international market.