India hikes windfall taxes on petrol, diesel and ATF exports
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New Delhi: The Indian government on Monday raised windfall taxes on exports of petroleum products, including petrol, diesel and aviation turbine fuel (ATF), amid volatility in global crude oil prices linked to tensions surrounding the Iran conflict.
According to a government order, the revised export duties have come into effect immediately. The move is aimed at ensuring adequate domestic fuel availability while responding to fluctuations in international energy markets.
The export duty on petrol has been increased to Rs 3.5 per litre from Rs 2.5 per litre. The government said the hike is intended to safeguard domestic fuel supplies.
The total export duty on diesel has also been sharply raised. Through two separate tax levies, the duty has been increased to Rs 25.5 per litre from Rs 15.5 per litre, which was applicable a fortnight ago.
Similarly, the export duty on aviation turbine fuel has been raised to Rs 22 per litre from Rs 14.5 per litre, effective Monday.
The latest revision comes after the Centre last month increased windfall taxes on diesel and ATF exports while reducing the levy on petrol exports, as surging global crude prices, driven by escalating tensions between the US and Iran, boosted refining margins.
According to a Finance Ministry notification issued on July 16, the export duty on diesel was raised to Rs 15.5 per litre from Rs 8.5 per litre, while the levy on aviation turbine fuel was increased to Rs 14.5 per litre from Rs 7.5 per litre.
At the same time, the government 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. Meanwhile, 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 IANS inputs