Abhijeet Sen
Abhijeet Sen is a digital journalist with over five years of experience specializing in the intersection of Indian politics, global economics and business trends. Known for translating complex policy ... Read More
New Delhi: The Indian government on Monday raised windfall taxes on exports of petroleum products, including petrol, diesel and aviation turbine fuel (ATF). The revised duties took effect immediately in response to volatile global crude oil prices driven by ongoing tensions involving Iran. According to official orders, the hike aims to stabilize domestic energy supplies and mitigate the impact of international market fluctuations. The duty on petrol rose to Rs 3.5 per litre, while diesel and ATF saw sharper increases.
Under the revised structure, the tax burden on key refined fuels has expanded considerably compared to rates set two weeks ago. Export duties on diesel jumped to Rs 25.5 per litre from Rs 15.5 per litre across two tax components, while ATF duty rose to Rs 22 per litre from Rs 14.5 per litre. By increasing levies on outgoing shipments, the government seeks to discourage local refiners from prioritizing lucrative foreign sales over domestic supply requirements during heightened geopolitical uncertainty.
The latest revision comes after last month the Centre has raised windfall taxes on exports of diesel and aviation turbine fuel (ATF) while lowering the levy on petrol exports, as surging global oil prices driven by the escalating US-Iran conflict boosted refining margins.
According to a Finance Ministry notification on July 16, the export duty on diesel has been increased to Rs 15.5 per litre from Rs 8.5 per litre, while the levy on aviation turbine fuel has been raised to Rs 14.5 per litre from Rs 7.5 per litre. At the same time, the government has reduced the export duty on petrol to Rs 2.5 per litre from Rs 4 per litre.
Last month, the Special Additional Excise Duty (SAED) on petrol exports was increased to Rs 4 per litre from Rs 1.5 per litre. At the same time, the export duty on diesel was reduced to Rs 8.5 per litre from Rs 14 per litre, while the levy on ATF exports was cut to Rs 7.5 per litre from Rs 12.5 per litre.
(With inputs from agencies)
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