Government increases export restrictions on petrol and diesel

The government announced in a notification on Sunday that the prohibitions on the export of petrol and diesel had been expanded.

This is a step in the government's attempts to guarantee that refined fuels are accessible for the domestic market. India is the third-largest energy consumer in the world.

The initial plan called for the curbs to remain in place through the end of the fiscal year 2023, which finished yesterday.

How long the curbs would be present was not mentioned in the most recent notice.

The government placed a windfall tax on the export of refined fuel last year. Additionally, it required businesses to sell locally until the end of (Financial Year) FY23 the equivalent of 50% of their petrol exports and 30% of their diesel exports.

The windfall tax on the export of diesel was reduced to its lowest level of Rs 0.50 per liter and nil on jet fuel Aviation Turbine Fuel (ATF) as of March 4 of this year, while the charge on domestically generated crude oil was slightly increased.

The export of fuel by Indian companies to nations, including those in Europe, may be noted here. These nations have ceased purchasing refined goods from Russia as a result of its invasion of Ukraine.

The limits were implemented as a result of the refiners Reliance Industries and Nayara Energy, who were major Indian consumers of discounted Russian supplies, earning significant profits by actively increasing fuel exports rather than domestic sales.

This compelled Public Sector Undertaking or Power Supply Unit (PSU) refiners to sell fuel at lower, government-capped prices to satisfy domestic demand.

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