SYLLABUS SECTION: GS III (ECONOMY)
WHY IN THE NEWS?
The Indian government has removed the recently imposed chesses and levies on diesel and aviation turbine fuel, and the chessi on exports of petrol.
KEY DETAILS ABOUT AVIATION FUEL EXPORTS:
- The government has also exempted petrol, diesel and ATF from levy of duties when exported from refinery units located in Special Economic Zones.
THE REASON FOR THE EXTRA LEVIES
- With an aim to address the issue of fuel shortage in the country, the government had on July 1 imposed special additional excise duty on export of petrol and diesel.
- Chesses equal to Rs. 6 per liter on petrol and Rs. 13 per liter on diesel were imposed on their exports in Aviation Fuel exports.
- Global crude prices had risen and domestic crude producers were making windfall gains.
- Private oil marketing companies were exporting petrol and diesel to foreign countries like Australia for better realization.
- The shortage of fuel at retail outlets was because oil marketing companies were not willing to sell the commodity at a loss since prices had not increased despite rising crude and depreciating rupee– these two factors had led to oil marketing companies losing Rs. 20-25 per liter on diesel and Rs. 10-15 per liter on petrol.
Read more: UPSC CURRENT AFFAIRS
SOURCE: BUSINESS STANDARD