The Central Government has increased the windfall gains tax on exports of diesel and aviation turbine fuel (ATF) while retaining the existing levy on petrol exports. The revised rates came into effect on June 16, according to a notification issued by the Finance Ministry.
Under the latest revision, the Special Additional Excise Duty (SAED) on diesel exports has been raised to Rs 14 per litre from Rs 13.5 per litre. The export duty on ATF has also been increased significantly to Rs 12.5 per litre from the earlier Rs 9.5 per litre. However, the duty on petrol exports remains unchanged at Rs 1.5 per litre.
The government has not made any changes to duties on petrol and diesel sold for domestic consumption. The revised taxation applies only to fuel exports.
The move comes amid continued volatility in global energy markets following escalating tensions in the Middle East. Rising crude oil prices, triggered by the ongoing conflict involving Iran, Israel and the United States, have widened the price gap between domestic and international fuel markets.
India first imposed export duties on diesel and ATF on March 26 as a response to the geopolitical crisis and has been reviewing the rates every fortnight. Export duty on petrol was introduced later, on May 16.
The primary objective of the windfall tax is to ensure adequate availability of petroleum products within the country by discouraging excessive exports during periods of global supply uncertainty. The government aims to prevent exporters from benefiting disproportionately from elevated international fuel prices while safeguarding domestic energy security.
With crude oil markets continuing to react to developments in the Middle East, authorities are expected to closely monitor fuel prices and export trends. The fortnightly review mechanism allows the government to adjust tax rates in line with changing global market conditions and domestic supply requirements.
