Govt Hikes Windfall Tax On Petrol, Diesel, ATF Exports To Boost Domestic Supply

New Delhi, Aug 4 (KNN) The government has increased the special additional excise duty (SAED) on exports of petrol, diesel and aviation turbine fuel (ATF), amid continued volatility in global crude oil prices driven by tensions in West Asia.

The export duty on petrol has been raised by Rs 1 per litre to Rs 3.5 per litre from Rs 2.5 per litre, effective August 3, ANI reported, citing an official government order.

The windfall tax on diesel exports has been sharply increased to Rs 25.5 per litre from Rs 15.5 per litre, while the levy on ATF exports has been hiked to Rs 22 per litre from Rs 14.5 per litre.

Move aimed at boosting domestic availability

The increase in export duties is aimed at discouraging overseas shipments and ensuring adequate domestic availability of petroleum products such as petrol, diesel and jet fuel.

The decision comes against the backdrop of rising global oil prices, partly triggered by geopolitical tensions, including the escalating US-Iran situation, which has improved refining margins.

Frequent revisions reflect market dynamics

The latest revision follows a series of adjustments by the government in recent months to align with global energy price trends. On July 16, the export duty on diesel was raised to Rs 15.5 per litre and on ATF to Rs 14.5 per litre, while petrol duty was reduced to Rs 2.5 per litre. 

In an earlier revision, petrol duty had been increased to Rs 4 per litre from Rs 1.5 per litre, even as diesel and ATF duties were lowered. 

On June 30, petrol export duty stood at Rs 4 per litre and diesel at Rs 8.5 per litre, while on April 30, diesel duty was fixed at Rs 23 per litre and ATF at Rs 33 per litre, with no duty on petrol exports. 

In all instances, the Road and Infrastructure Cess remained nil, making the special additional excise duty the sole component of the export levy.

(KNN Bureau)