Finance Ministry hopes cess will not hit petroleum exports in FY23

The ministry imposed cess on petroleum products of Rs 6 a litre, Rs 13 per litre and Rs 6 on petrol, diesel and ATF exports, respectively, to improve domestic fuel supply and garner additional revenue

The Centre expects that its move to impose cess on petrol, diesel and aviation turbine fuel (ATF) exports is unlikely to hit fuel exports that touched $67 billion in FY22.

“We have not taken away the entire profit margin on oil exports. So, we don’t think it will have a negative impact on petroleum exports. We hope our petroleum exports will still remain competitive. Duty hike on gold will have a positive impact on current account deficit (CAD),” a senior finance ministry official said.

The finance ministry on Friday imposed cess of Rs 6 a litre, Rs 13 per litre