Business News | To Keep Fuel Prices Stable, Govt Cuts Petrol, Diesel Excise Duty; ATF Tax Revised
Get latest articles and stories on Business at LatestLY. Amid the West Asia crisis and rising crude oil prices, the Finance Ministry has reduced special excise duty on petroleum products to keep petrol and diesel prices stable.
New Delhi [India], March 27 (ANI): Amid the West Asia crisis and rising crude oil prices, the Finance Ministry has reduced special excise duty on petroleum products to keep petrol and diesel prices stable.
The duty on petrol has been cut from Rs 13 to Rs 3 per litre, while diesel duty has been reduced from Rs 10 to zero.
The announcement comes under the supply disruptions of crude amid the ongoing West Asia crisis "...the Central Government, being satisfied that it is necessary in the public interest so to do...," notes a part of the order.
At the same time, the government has revised taxes on Aviation Turbine Fuel (ATF). A new excise duty of Rs 50 per litre has been introduced. However, exemptions will limit the effective duty to Rs 29.5 per litre, easing the burden on the aviation sector.
The notification says "Aviation Turbine Fuel Rs 50 per Litre" as special additional excise duty, alongside exemptions that cap the effective rate at "Rs. 29.5 per litre" in certain cases.
Other changes in excise duties have also been made to help maintain overall stability in fuel prices.
The new rules will not apply to exports, except for supplies by public sector oil companies to neighbouring countries such as Nepal, Bhutan, Bangladesh and Sri Lanka, which will continue under the revised system.
Amendments to the Central Excise Rules, 2017, also state that rebate and export procedures will not apply to petrol, diesel and ATF, except for exports to these neighbouring countries by public sector firms.
The government said the changes are in public interest, aiming to balance consumer relief, revenue needs and industry requirements amid global energy uncertainty.
All revised duty rates have come into effect immediately following official notifications issued on March 26 under the Central Excise Act, 1944 and relevant Finance Acts. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)