New Delhi, June 16: The central government has raised the windfall gain tax on diesel and aviation turbine fuel (ATF) exports effective Tuesday. However, there has been no change in the tax on petrol exports.
The windfall gain tax is reviewed every 15 days and is determined based on crude oil prices.
According to a notification from the Finance Ministry, the government has increased the special additional excise duty (SAED) on diesel exports to ₹14 per liter, up from ₹13.5 per liter. Similarly, the SAED on ATF has been raised to ₹12.5 per liter, previously set at ₹9.5 per liter.
In contrast, the tax on petrol exports remains unchanged at ₹1.5 per liter.
The government has not altered the excise duty on petrol and diesel used for domestic consumption, ensuring that there will be no impact on fuel prices at the domestic level.
Due to ongoing tensions in West Asia, global crude oil prices have surged significantly. This prompted the government to impose export duties on diesel and ATF on March 26. An export duty on petrol was introduced on May 16.
The government’s aim with the windfall tax is to stabilize fuel prices domestically.
This measure seeks to prevent exporters from taking undue advantage of price disparities, especially as crude oil prices have risen globally since the onset of conflict. Additionally, it aims to ensure the domestic availability of petroleum products by discouraging exports amid the West Asia crisis.
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