Fuel duty cut costs govt Rs 5,500 cr in just two weeks
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New Delhi: The Centre’s Rs 10-per-litre excise duty cut on petrol and diesel, coupled with higher export duties on diesel and aviation turbine fuel (ATF), will lead to a net revenue loss of Rs 5,500 crore over a fortnight, a senior official said.
CBIC Chairman Vivek Chaturvedi said the excise reduction alone will cost about Rs 7,000 crore, while increased export duties are expected to generate Rs 1,500 crore in the same period. Export duties have been set at Rs 21.5 per litre on diesel and Rs 29.5 per litre on ATF, effective March 26, and will be reviewed every two weeks.
“The situation is dynamic, it is not business as usual where you would have a predictability that certain metric tonne of goods will come. “We are living in difficult times. Any (revenue) implication will have to factor in actual supply of goods coming into the country, he said.
The government said the move aims to prioritise domestic fuel availability and ensure energy security amid global supply disruptions. The excise cut is also intended to reduce under-recoveries of oil marketing companies, which have been hit by surging crude prices.The move to levy export duty on diesel and ATF is to “prioritise domestic availability of diesel and ATF”.
