Centre raises windfall tax on diesel and ATF exports, cuts levy on petrol

The Centre has increased windfall taxes on exports of diesel and aviation turbine fuel (ATF) while reducing the levy on petrol exports, reflecting higher refining margins driven by the recent surge in global crude oil prices.

According to a notification issued by the Finance Ministry, the export duty on diesel has been raised to Rs 15.5 per litre from Rs 8.5 per litre, while the levy on aviation turbine fuel has been increased to Rs 14.5 per litre from Rs 7.5 per litre.

In contrast, the windfall tax on petrol exports has been reduced to Rs 2.5 per litre, down from Rs 4 per litre.

The revised rates came into effect on Thursday.

The latest adjustment follows a sharp increase in international crude oil prices after tensions between the United States and Iran escalated, pushing up refining margins for petroleum products.

Global oil prices rose earlier this week after the US reimposed a naval blockade on Iranian ports, prompting retaliatory strikes by Iran against American military infrastructure in the region. Prices later eased from their highs but remained elevated.

The government had revised the windfall tax structure earlier this month in the opposite direction, raising the duty on petrol exports while lowering levies on diesel and ATF.

At that time, the Special Additional Excise Duty (SAED) on petrol exports was increased to Rs 4 per litre from Rs 1.5 per litre. 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.

Windfall taxes on domestically produced crude oil and exports of petroleum products are reviewed periodically by the government to reflect changes in international crude prices and refining margins.

With IANS inputs