According to an order issued on Thursday, the government has now reversed its earlier decision to scrap such taxes, as authorities seek to recalibrate revenue from the energy sector amid heightened volatility in global oil markets.
Talking to X, Finance Minister Nirmala Sitharaman said that the rise in duties imposed on exports of diesel at Rs 21.5 per litre and on ATF at Rs 29.5 per litre will ensure adequate availability of these products for domestic consumption.
This came along with a reduction in excise duty on petrol and diesel meant for domestic consumption. The Indian government slashed the special additional excise duty on petrol to Rs 3 per litre and scrapped it on diesel.
The government’s move comes a day after India’s largest private fuel retailer, Nayara Energy, raised petrol prices by Rs 5 per litre and diesel by Rs 3 per litre. Nayara Energy, which is majorily-owned by Russia’s Rosneft, operates over 7,000 fuel stations across India. Dealers expressed concern over the price hike, warning of potential demand impact and signalling possible protests. Some dealers also indicated that fuel supplies had been curtailed in recent days.
Reliance Industries, India’s most valuable company with a market capitalization of more than Rs 18 lakh crore, is a major exporter of ATF and diesel. Its two refineries at Jamnagar produce nearly 5 million tonnes of air turbine fuel, a large part of which is exported. Overall, it produces one-fourth of India’s total ATF.
Meanwhile, the company on Thursday rejected media reports claiming that the Mukesh Ambani-led conglomerate purchased Iranian crude oil. “These claims are entirely baseless, factually incorrect, and misleading. We urge media outlets to verify facts thoroughly before publication and to refrain from disseminating unsubstantiated reports that can misinform stakeholders and the public,” it said in a statement.The sharp decline in RIL shares has been weighing on benchmark indices Sensex and Nifty, which declined nearly 2% on Friday. The stock has fallen nearly 4% in the past five days, and around 3% in the past one month.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)