Private refiners were also making windfall profits by sourcing Russian oil at discounted rates and re-exporting them to other markets. file | Photo credit: The Hindu
According to a notification issued by the Directorate General of Foreign Trade (DGFT) on April 1, the government has extended export restrictions on petroleum products, forcing oil refiners to sell a significant portion of their export volumes in the domestic market.
These sanctions were first implemented in July 2022, along with a windfall tax on the profits of oil producers. crude oilAmid a jump in international oil prices after petrol, diesel and aviation turbine fuel (ATF) Russia-Ukraine conflict Escaped. Private refiners were also making windfall profits by sourcing Russian oil at discounted rates and re-exporting them to other markets.
Domestic oil producers sell their production to local refineries at international parity prices and were making windfall profits, and with petrol, diesel exports becoming “highly remunerative”, it is seen that some refiners are drying their pumps in the domestic market. ,” the finance ministry noted at the time.
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“The exporter is required to submit a self-declaration to the concerned Customs authority at the time of export, confirming that 50% of the quantity mentioned in the shipping bill has been supplied to the domestic market during the relevant financial year ,” said the DGFT notification dated April 1. A slightly lower commitment of 30% of exports to be supplied to the Indian market has been set for diesel exporters.
While exports to Bhutan and Nepal are excluded from the calculation of outbound shipments under this criterion, 100% export-oriented units as well as firms located in Special Economic Zones are also exempted from these quantitative restrictions.
“Such exporters are also required to file quarterly returns to the Ministry of Petroleum and Natural Gas,” according to the DGFT notification, which does not specify an expiry date for these provisions.
Indian petrol and diesel prices have come down at the retail level were frozen from May 2022The government had cut excise duty on both the fuels amid high global oil prices. Global prices have declined from last year’s highs and have been in the range of $75-$80 a barrel in recent weeks.
With oil prices at $75 a barrel, Indian oil marketing companies make a profit of Rs 11.1 per liter of diesel and Rs 8.7 per liter of petrol at current retail prices, according to an estimate by JM Financial Ltd.