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New Delhi: According to CBIC Chairman’s statement on Friday, the government has imposed export duty on diesel and turbine fuel with an aim to improve the availability of these products in the domestic market.The decision is also expected to strengthen the country’s energy security by ensuring adequate supply amid the evolving global circumstances.
Revenue collection from the new duties is estimated to be around Rs 1,500 crore in a fortnight.In a parallel measure, the government has reduced special excise duty on petrol and diesel to address low realizations of oil marketing companies (OMCs). The move is aimed at providing relief to consumers, with officials indicating that retail prices of key fuels will remain unchanged.The government revised its fuel duty structure, reducing special additional excise duty on petrol to Rs 3 per liter and eliminating it completely on diesel.The move comes amid ongoing disruptions to global oil supply chains linked to the Middle East conflict, in which Iran has tightened its control over the Strait of Hormuz.“The additional excise duty on petrol was reduced to Rs 3 per liter from the earlier Rs 13 per litre. Meanwhile, the excise duty on diesel was reduced to Rs 0 from the earlier Rs 10 per litre,” according to a government order on Thursday.Meanwhile, global crude oil prices edged lower on Friday after the US indicated that talks with Iran were “going very well”, leading to a 10-day extension of the deadline with the country. The development weighed on sentiment and major benchmarks fell nearly 2 per cent in early trade.Brent crude, which had earlier risen as high as $108 a barrel, slipped 2.08 percent to $105.75 a barrel. West Texas Intermediate (WTI) fell 1.94 percent to $92.67 by 7:50am IST. The fall followed a sharp rise in the previous session, when Brent jumped 4.8 percent to $101.89 a barrel amid concerns over disruptions in the Strait of Hormuz. Prices remain well above pre-conflict levels of around $70 a barrel, with WTI also up 4.6 percent in the previous session to $94.48.Domestically, Nayara Energy, India’s largest private fuel retailer, on Thursday raised petrol prices by Rs 5 per liter and diesel by Rs 3 per liter citing rising input costs linked to Middle East tensions. According to PTI sources, the company operates 6,967 of India’s 102,075 petrol pumps and has passed on part of the cost increase to consumers.Additionally, considering the overall issues arising from the Middle East, the government formed an inter-ministerial group, which will be led by Defense Minister Rajnath Singh, according to ANI sources. Union Home Minister Amit Shah, Union Finance Minister Nirmala Sitharaman and Union Petroleum Minister Hardeep Singh Puri will be among the members.