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New Delhi: The government will review the windfall tax on petroleum and the duty on auto fuel export, that were imposed on Friday, every 15 days for recalibration, revenue secretary Tarun Bajaj told reporters here.
“Every 15 days, we will see what are the international prices of diesel, petrol and aviation turbine fuel and what are the crude oil price and based on that if there is need to revise it, we will revise it every 15 days," Bajaj told reporters on the sidelines of a finance ministry function organised to commemorate five years of GST.
The government announced a cess of ₹23,230 per tonne on domestically produced crude oil to take away the windfall gains accruing to producers from high international oil prices. Crude oil produced in India is sold to domestic refineries at international parity prices, and not based on cost-of-production-plus- margin basis.
In the case of petrol and diesel too, refineries sell to local customers at a price benchmarked against the international price of these fuels. “Crude prices have risen sharply in recent months. The domestic crude producers sell crude to domestic refineries at international parity prices. As a result, the domestic crude producers are making windfall gains. Taking this into account, a cess of Rs. 23250 per tonne has been imposed on crude. Import of crude would not be subject to this cess," finance ministry said in a statement, This cess will have no adverse impact, whatsoever, on domestic petroleum products/fuel prices, it said.
In the case of exports of petrol and diesel, a special additional excise duty/cess has been imposed on exports of petrol and diesel at the rate of ₹6 per litre on Petrol and ₹13 per litre on diesel.
A special additional excise duty of ₹6 per litre has also been imposed on exports of aviation turbine fuel.