Reliance SEZ Refinery Exempt from New Export Duties on Diesel and Jet Fuel
Export duties on diesel, jet fuel not applicable to Reliance SEZ Refinery: Govt
The Economic TimesImage: The Economic Times
The Indian government confirmed that export duties on diesel and jet fuel will not apply to Reliance Industries' special economic zone (SEZ) refinery due to court rulings. This exemption allows Reliance's SEZ unit, which has a capacity of 35 million tonnes, to continue operations without the added financial burden of these new taxes.
- 01Export duties on diesel and jet fuel do not apply to Reliance's SEZ refinery.
- 02The SEZ refinery has an annual capacity of 35 million tonnes.
- 03The government imposed new export duties of ₹21.50 per litre on diesel and ₹29.50 per litre on jet fuel.
- 04These duties aim to ensure adequate domestic fuel supply amidst global disruptions.
- 05Export duties were first introduced in 2022 following the Ukraine war.
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The Indian government announced that export duties imposed on diesel and jet fuel will not affect Reliance Industries' special economic zone (SEZ) refinery, as per recent court rulings. Jainendra Singh Kandhari, Joint Secretary in the finance ministry, stated that the special additional excise duty and additional excise duty do not apply to SEZ refineries. Reliance operates two refineries in Gujarat, with the SEZ unit focusing on exports and having an annual capacity of 35 million tonnes. In contrast, the domestic refinery can process up to 33 million tonnes. Recently, the government reintroduced export duties of ₹21.50 per litre on diesel and ₹29.50 per litre on jet fuel to discourage exports and maintain adequate domestic supplies amid disruptions caused by the ongoing conflict in Iran. These duties will be reviewed every fortnight. Previously, export duties were implemented in 2022 following the Ukraine war to prevent domestic shortages as refiners diverted supplies to international markets.
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The exemption from export duties allows Reliance's SEZ refinery to maintain competitive pricing in international markets, potentially benefiting the company's profitability and export volumes.
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