Centre hikes export duty on diesel, aviation fuel amid West Asia crisis
PTC News Desk: The government has increased the windfall profit tax, officially known as the Special Additional Excise Duty (SAED), on exports of diesel and Aviation Turbine Fuel (ATF) to ensure sufficient domestic fuel supplies and benefit from higher global energy prices.
According to a Finance Ministry notification, the export duty on diesel has been raised from ₹13.5 per litre to ₹14 per litre, while the duty on ATF exports has increased from ₹9.5 per litre to ₹12.5 per litre. The export tax on petrol remains unchanged at ₹1.5 per litre. The revised rates came into effect on June 16.
The decision comes as global oil markets remain volatile due to ongoing tensions in West Asia and ahead of a possible peace agreement between Iran and the United States.
The government clarified that excise duties on petrol and diesel sold within India remain unchanged, meaning consumers are not expected to face any immediate impact at the fuel pump.
India reintroduced the windfall tax on March 26 after geopolitical tensions in West Asia escalated following military actions involving the US, Israel, and Iran. Since then, export duties have been reviewed every two weeks based on international crude oil prices and refinery profit margins. On May 16, the tax was also extended to petrol exports.
Officials said the higher export duties are intended to discourage refiners from exporting excessive quantities of fuel to take advantage of elevated international prices. The measure aims to maintain adequate domestic fuel availability during periods of global supply uncertainty and rising crude oil prices.
The government maintains that the windfall tax helps prevent exporters from earning disproportionate profits from the price gap between domestic and international markets during times of global market disruption.
- With inputs from agencies
