Tax on domestic crude oil slashed, jet fuel levy up

New Delhi: In its fortnightly review of windfall tax, the government on Tuesday slashed the levy on domestically produced crude oil, though it hiked the tax on export of diesel and jet fuel or ATF in sync with high international prices.

Tax on domestically produced crude oil was brought down to Rs 9,500 per tonne from Rs 11,000, effective November 2, a notification said.

Windfall tax on jet fuel was increased to Rs 5 per litre, from Rs 3.50 per litre.

The government also hiked the levy on export of diesel to Rs 13 per litre from Rs 12 per litre.

Edible oil stock limit order
The government on Tuesday exempted oil seeds and edible oil wholesalers as well as big chain retailers from the current stock limit order, with immediate effect.

Department of Food and Public Distribution said that "as the price situation of major edible oils is now witnessing a gradual reversal as there is considerable decline in the prices of edible oil in the international market as well as the domestic market, the stock limit order was reviewed by the department".

Official sources said that a need was felt for exempting big chain retailers and wholesalers from the stock control order as reports were coming that wholesalers and big chain retail outlets were facing problems in their sale due to the Control Order, as the limits specified for them was very less and replacement of shelf stocks in city limits is not possible on everyday basis.

Therefore, in a major move to further make the supply chain seamless, the government has exempted wholesalers and big chain retailers from the current stock limit order.

The order will come into effect immediately, the department said.

The removal of wholesalers and big chain retailers from the stock limit order would allow them to keep various varieties and brands of edible oils, which they are unable to keep at present due to stock control order, sources said further.

In view of restoration of ample supplies and continuous decline in the prices of edible oils both in the international as well as domestic market, it was an opportune time for exemption, they added.

Earlier, in an effort to cool down the domestic prices of edible oils, the government had imposed stock limits on oil and oilseeds through the Removal of Licensing

Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021 which became effective from October 8, 2021.

This order was later extended till December 31, 2022.