Centre hikes windfall tax on diesel, ATF exports amid oil market volatility
Levy on diesel exports raised by Rs 8.5 per litre, jet fuel duty increased by Rs 7.5 per litre
The Centre has increased the windfall tax on diesel and aviation turbine fuel (ATF) exports as global crude oil prices remain volatile amid developments in West Asia, according to a government notification issued on Monday.
As per the notification, the windfall tax on petrol exports has been increased to Rs 3.5 per litre from Rs 2.5 per litre, an increase of Rs 1 per litre, effective August 3.
The tax on diesel exports has been raised to Rs 24 per litre from Rs 15.5 per litre, marking an increase of Rs 8.5 per litre.
The windfall tax on exports of air turbine fuel (ATF), commonly known as jet fuel, will be increased to Rs 22 per litre from Rs 14.5 per litre, effective Wednesday.
The latest revision comes amid fluctuations in global oil prices following US President Donald Trump’s announcement of fresh negotiations with Iran. Brent crude prices declined sharply despite Tehran denying that talks were underway, highlighting the impact of geopolitical developments in the Middle East on global energy markets.
The government reviews windfall taxes on petroleum products every fortnight and adjusts the levies based on changes in international crude prices, export margins and market conditions.
Earlier, on July 16, the Centre had reduced the export duty on petrol to Rs 2.5 per litre from Rs 4 per litre. However, the duty on ATF exports was increased from Rs 7.5 per litre to Rs 14.5 per litre, while the levy on diesel exports was raised from Rs 8.5 per litre to Rs 15.5 per litre.
