Madhya Pradesh government has introduced a self-declaration based settlement system for eligible petrol, diesel and CNG pump operators. Pending tax assessment cases for 2024-25 can now be completed through trader-provided information, subject to conditions.

Petrol, diesel and CNG pump operators in Madhya Pradesh have received relief in pending tax assessment cases, with the state government allowing eligible traders to complete assessments through a self-declaration process.The Commercial Tax Department has issued a notification providing a 90-day window for eligible fuel station operators to submit applications for pending cases related to the financial year 2024-25.Under the new arrangement, tax assessment will be considered complete on the basis of information provided by the traders, provided they fulfil the prescribed conditions.

Relief under multiple tax laws

The new system will apply to pending cases under the Madhya Pradesh VAT Act, 2002, the Central Sales Tax Act, 1956, the Motor Spirit Cess Act, 2018, and the High Speed Diesel Cess Act, 2018.Fuel pump operators will have to submit applications in the prescribed format. The department will complete the assessment based on the details and documents provided.

Who will get the benefit?

The facility will be available only to registered petrol pump operators who purchased petrol, diesel or CNG from notified oil companies or registered dealers after payment of applicable taxes and cess.The benefit will not be available to operators facing tax evasion cases for the relevant financial year.Applicants must also ensure that there are no pending notices related to additional tax demands, audits or compliance requirements.

Documents required with application

Operators will need to submit proof of tax and interest payments along with their applications.Businesses with turnover exceeding ₹2 crore will also have to provide a CA-certified audit report.In cases where traders have claimed concessions or benefits under the Central Sales Tax system, original documents such as Form-C, Form-F and Form-E will be required.

Four forms prescribed

The department has prescribed separate forms for different tax categories:

• Form-A: For VAT-related assessment

• Form-B: For Central Sales Tax-related assessment

These forms will help streamline the process of settling pending cases.

30-day deadline for department response

The new notification also fixes a timeline for processing applications.If the department does not raise any objection or seek additional information within 30 days of receiving the application, the application will be considered accepted and the assessment process will be treated as completed.The move is expected to reduce pending assessment cases and provide faster resolution to eligible fuel station operators.

Opportunity for correction

If officials find any deficiency or error in an application, the applicant will be given an opportunity to submit clarification or make corrections.Failure to rectify shortcomings within the given period or non-appearance during hearing may lead to rejection of the application.

Who will not get benefit?

Fuel pump operators involved in tax evasion cases will remain outside the scheme.Those who received notices for additional tax demands, failed to comply with audit-related notices or claimed refunds for the relevant year will also not be eligible.

 The Central Government has revised export duties on key petroleum products, increasing the levy on diesel and aviation turbine fuel (ATF) while reducing the duty on petrol exports. The revised rates came into effect on July 16, as part of the government's periodic review aimed at ensuring adequate fuel availability in the domestic market amid continuing volatility in global crude oil markets.

Under the latest revision, the export duty on diesel has been increased from ₹8.50 per litre to ₹15.50 per litre, marking a rise of ₹7 per litre. Similarly, the duty on aviation turbine fuel (ATF) has been raised from ₹7.50 per litre to ₹14.50 per litre.

In contrast, exporters of petrol have received partial relief, with the export duty reduced from ₹4 per litre to ₹2.50 per litre.

The changes apply exclusively to fuel exports and do not affect domestic retail fuel prices.

Move Aims to Protect Domestic Supplies

According to the government, the revised export duties have been introduced to prevent shortages of petroleum products within the country during a period of uncertainty in international crude oil markets.

Officials said higher export duties discourage refiners from diverting larger volumes of diesel and ATF to overseas markets solely for higher profits, thereby helping maintain sufficient supplies for domestic consumption.

The government reviews these duties every fortnight based on prevailing international market conditions.

Review Conducted Every 15 Days

Officials from the Finance Ministry said export duty rates are revised every 15 days after assessing the average international prices of crude oil, petrol, diesel and aviation fuel.

The previous review came into effect on July 1, and the latest revision will remain applicable for the fortnight beginning July 16 unless modified during the next scheduled assessment.

This dynamic pricing mechanism allows the government to respond quickly to changing global energy market conditions.

Export Levy Introduced Earlier This Year

The Finance Ministry noted that the export levy was originally introduced on March 27 through the Special Additional Excise Duty (SAED) and the Road and Infrastructure Cess (RIC) framework.

The objective was to ensure that domestic fuel requirements remain adequately met, particularly during periods when global prices make exports significantly more profitable for refiners.

The policy gained importance amid geopolitical tensions and supply disruptions in West Asia, which have contributed to fluctuations in international crude oil prices.

By imposing export duties, the government seeks to balance export opportunities for refiners with the country's energy security needs.

No Direct Impact on Retail Fuel Prices

The government has clarified that the revised duties apply only to petroleum products exported from India and do not affect fuel sold in the domestic market.

Since there has been no change in import duties or domestic taxation on petrol and diesel, retail fuel prices at petrol pumps are expected to remain unaffected by the latest revision.

Consumers are therefore unlikely to experience any immediate increase in fuel prices as a result of these export duty changes.

Balancing Energy Security and Trade

Industry observers say the government has increasingly relied on export duty adjustments as a policy tool to manage domestic fuel availability while allowing refiners to remain competitive in global markets.

Higher duties on diesel and aviation fuel may reduce export volumes if international margins narrow, while the lower levy on petrol could provide refiners with greater flexibility in overseas sales where domestic demand remains comparatively lower.

The fortnightly review mechanism is expected to continue enabling policymakers to respond swiftly to changes in global crude prices and evolving geopolitical developments affecting energy markets.

The Central Government has decided to withdraw all emergency restrictions imposed on the purchase of petrol and diesel from July 1, 2026, bringing relief to transporters, industries and commercial fuel consumers across the country. The decision comes after authorities reviewed the fuel supply situation and concluded that petroleum availability has returned to normal.

With the new order, the 200-litre daily diesel purchase limit per vehicle at retail fuel stations has been abolished, allowing vehicle owners and commercial operators to purchase fuel according to their operational requirements. Restrictions that prevented factories, industrial units and other bulk consumers from purchasing fuel at retail petrol pumps have also been withdrawn.

The Ministry of Petroleum had introduced the emergency restrictions on June 11 following concerns over fuel availability triggered by disruptions in global crude oil markets. The curbs were initially intended to remain in force for 90 days but have now been revoked less than three weeks later after improvements in supply conditions.

Fuel supply situation stabilised

According to the government, a comprehensive review of petroleum stocks and supply chains showed that the availability of crude oil and refined petroleum products has significantly improved. As a result, officials concluded that the emergency measures were no longer required in the public interest.

A fresh order issued on June 29 formally revoked the earlier restrictions, and the revised rules will come into effect nationwide from July 1.

What changes from July 1?

The most significant change is the removal of the 200-litre daily diesel purchase limit that had been applicable at retail petrol pumps. Commercial vehicle operators, transport companies and other consumers can now purchase any quantity of diesel based on their operational needs.

Additionally, industries, manufacturing units, telecom tower operators and other commercial establishments will once again be permitted to purchase petrol and diesel directly from retail fuel stations instead of relying exclusively on bulk fuel supply channels.

Over the past 18 days, large commercial consumers had been required to procure fuel only through designated bulk sale points, a measure that often resulted in higher procurement costs.

Why were the restrictions imposed?

The emergency restrictions were introduced amid concerns arising from the US-Iran conflict, which disrupted global energy markets and raised fears of crude oil supply shortages. The government had sought to prevent hoarding, black marketing and diversion of diesel while ensuring adequate fuel availability for the general public.

Under the June 11 order, commercial buyers were barred from purchasing fuel at retail pumps, while a daily purchase cap of 200 litres of diesel per customer or vehicle was imposed across retail outlets.

Retail and bulk price gap

One of the major reasons commercial buyers shifted to retail pumps before the restrictions was the substantial difference between retail and bulk diesel prices.

For instance, diesel was available at approximately ₹95.20 per litre at retail fuel stations in Delhi, whereas bulk consumers had to pay around ₹134.50 per litre, creating a price gap of nearly ₹39 per litre. This encouraged transport operators, factories and telecom companies to increasingly purchase fuel from retail outlets, resulting in unusually high demand.

The pricing difference emerged because government-owned oil companies kept retail fuel prices unchanged to shield consumers from inflation despite rising international crude prices, while bulk fuel prices continued to remain market-linked.

Improved Gulf oil supplies

The government stated that easing geopolitical tensions in West Asia has helped restore crude oil shipments from Gulf producers. Shipping through the strategically important Strait of Hormuz has also normalised, strengthening India's domestic fuel stocks and improving supply across the country.

The Ministry of Petroleum said the latest decision was issued under its Special Powers Order, 2026, revoking the emergency notification issued earlier in June.

Transport and industries to benefit

The withdrawal of restrictions is expected to provide significant relief to the transportation, logistics, infrastructure and manufacturing sectors.

Truck operators, state transport buses and commercial fleet owners will no longer face purchase limits or additional logistical challenges, while factories and industrial consumers can resume buying fuel directly from retail outlets, simplifying procurement and reducing operational hurdles.