New Delhi, July 16: The central government has raised the windfall tax on diesel and aviation turbine fuel (ATF) exports while reducing the tax on petrol. This decision comes in response to rising crude oil prices due to the ongoing U.S.-Iran conflict. The new rates took effect on Thursday.
According to a notification from the Ministry of Finance, the export duty on diesel has increased from ₹8.5 per liter to ₹15.5 per liter. Similarly, the export tax on ATF has risen from ₹7.5 per liter to ₹14.5 per liter.
In contrast, the government has lowered the export duty on petrol from ₹4 per liter to ₹2.5 per liter.
This adjustment occurs amid escalating tensions between the U.S. and Iran, which have led to a sharp increase in global crude oil prices, with benchmark Brent crude hovering around $85 per barrel.
Tensions in the Middle East continue to rise. U.S. President Donald Trump has reinstated a naval blockade on all Iranian ports, prompting Iran to retaliate with attacks on U.S. infrastructure in the region.
Earlier this month, the government modified the windfall tax on petroleum product exports. Under the new structure, the export duty on petrol was increased, while the duties on diesel and ATF were reduced.
During this revision, the Special Additional Excise Duty (SAED) on petrol was raised from ₹1.5 per liter to ₹4 per liter. Meanwhile, the export duty on diesel was decreased from ₹14 per liter to ₹8.5 per liter, and the duty on ATF was lowered from ₹12.5 per liter to ₹7.5 per liter.
The government regularly reviews the windfall tax on domestically produced crude oil and petroleum products to adjust the duties in line with fluctuations in international crude oil prices and refining margins.
Leave a Comment