Centre Raises Windfall Tax on Petrol, Diesel and ATF Exports

New Delhi, Aug 4: The Government of India has raised windfall taxes on exports of petroleum products, including petrol, diesel and aviation turbine fuel (ATF), amid continued volatility in global crude oil prices and geopolitical uncertainties.

According to an official government order, the revised export duties came into effect immediately and are aimed at ensuring adequate domestic fuel availability while enabling the government to respond to fluctuations in international energy markets, including those linked to tensions surrounding the Iran conflict.

Under the revised structure, the export duty on petrol has been increased to Rs 3.5 per litre from Rs 2.5 per litre. The duty on diesel has seen the steepest rise, reaching Rs 25.5 per litre from Rs 15.5 per litre through two separate tax components. The export duty on ATF has also been raised to Rs 22 per litre from Rs 14.5 per litre.

The latest move follows a series of revisions over the past month. On July 16, the Centre had raised the export duty on diesel to Rs 15.5 per litre from Rs 8.5 per litre and on ATF to Rs 14.5 per litre from Rs 7.5 per litre, while cutting the petrol export duty to Rs 2.5 per litre from Rs 4 per litre.

India’s windfall tax regime seeks to capture extraordinary gains made by refiners during periods of elevated global crude prices while maintaining domestic fuel supplies.

The latest revision underscores the government’s strategy of closely monitoring global energy markets and adjusting duties to balance domestic energy security, refinery profitability and consumer interests amid persistent geopolitical risks. (Agencies)