NEW DELHI: Finance Minister Nirmala Sitharaman announced on Friday that the government would assess the increased tariffs imposed on oil, diesel, and Aviaion Turbine Fuel (ATF) based on market pricing every two weeks. She said that the world is living in "exceptional times" and that oil prices are out of control. "We do not want to hinder export, but we want to improve local availability," she said.
She said that since there is not any oil available and exports are making such incredible profits, we must provide at least some for our own citizen. We must adopt this two-pronged strategy, the minister added.
On Friday, the government imposed an export tax on petrol, diesel, ATF, and joined other countries like the United Kingdom in slapping a windfall tax on locally produced crude oil.
As of July 1, there is a levy of Rs. 6 per litre on the export of gasoline and ATF and Rs. 13 per litre on the export of diesel. Additionally, locally produced crude oil was subject to a levy of Rs 23,250 per tonne.
The tax on exports follows oil refiners, especially the private sector, reaping massive gains from exporting fuel to markets like Europe and the US. The tax on locally produced crude oil follows local producers reaping windfall gains from the rise in international oil prices.