Key facts
- India has increased the windfall tax on diesel and ATF exports.
India has increased the special additional excise duty (SAED), or windfall tax, on exports of diesel and aviation turbine fuel (ATF). The levy on diesel exports rose by 50 paise per litre to Rs 14, while the duty on ATF exports increased by Rs 3 per litre to Rs 12.5.
The increase in export levies on diesel and ATF signals the government's intent to capture a larger share of profits from oil refiners and exporters, particularly when international prices or refining margins are high. This move could impact the profitability of Indian oil companies engaged in exporting these fuels.
The Indian government has increased the special additional excise duty (SAED), commonly known as the windfall tax, on the export of diesel and aviation turbine fuel (ATF). The export levy on diesel has been raised by 50 paise per litre to Rs 14 per litre, from the previous rate of Rs 13.5 per litre. Similarly, the duty on ATF exports has been increased by Rs 3 per litre to Rs 12.5 per litre, up from Rs 9.5 per litre.
The tax on petrol exports remains unchanged at Rs 1.5 per litre. The government has also confirmed that there are no changes to the levies on petrol and diesel intended for domestic consumption.
These revised rates will come into effect from June 16 and will be applicable for the subsequent fortnight, aligning with the government's periodic review mechanism for export levies on petroleum products. These duties are distinct from taxes on domestic fuel sales and do not directly impact retail prices within India.
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