Govt hikes windfall tax on diesel, ATF exports; petrol levy held for fortnight from June 16 Energy Watch
Oil & Gas

Govt hikes windfall tax on diesel, ATF exports; petrol levy held for fortnight from June 16

The government has raised windfall tax on diesel and ATF exports while keeping the petrol levy unchanged for the fortnight beginning June 16

EW Bureau

New Delhi: The Centre on Monday increased the windfall gains tax on exports of diesel and Aviation Turbine Fuel (ATF) for the fortnight starting June 16, while leaving the duty on petrol exports untouched. The Special Additional Excise Duty (SAED) on diesel exports has been raised to Rs 14 per litre, from Rs 13.5 per litre earlier. The SAED on ATF exports has been increased to Rs 12.5 per litre, up from Rs 9.5 per litre.

The duty on petrol exports remains unchanged at Rs 1.5 per litre. In a notification, the Finance Ministry said the revised rates would take effect from June 16.

Domestic rates untouched

There is no change in the existing duty rates on petrol and diesel cleared for domestic consumption. The government had first imposed an export duty on diesel and ATF on March 26, amid rising tensions in West Asia following the US-Israel attack on Iran and the sweeping retaliation that followed. The rates have since been revised every fortnight. Export duty on petrol was introduced later, on May 16.

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The windfall tax was levied to boost domestic availability of fuel during the conflict in West Asia. With global crude oil prices climbing since the start of the war, the measure is intended to prevent exporters from taking undue advantage of the price differences. By disincentivising exports against the backdrop of the West Asia crisis, the levy seeks to ensure adequate domestic supply of petroleum products.

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