Centre hikes windfall tax on exports of diesel, petrol and ATF from Aug 3

The government on Monday increased the windfall gains tax on exports of petrol, diesel and aviation turbine fuel (ATF).

The Special Additional Excise Duty (SAED) on diesel exports has been increased to ₹24 per litre from ₹15.5 per litre, according to notifications issued by the department of revenue.

The levy on ATF exports has been raised to ₹22 per litre from ₹14.5 per litre.

The export duty on petrol has also been increased to ₹3.5 per litre from ₹2.5 per litre.

The finance ministry in a notification said the duty hikes will be effective from August 3.

The Centre had imposed a windfall tax on exports of diesel and ATF from March 27 amid escalating tensions in West Asia and has been reviewing the rates every fortnight.

Export duty on petrol was introduced from May 16.

On July 16, the government had raised the windfall tax on diesel exports to ₹15.5 per litre from ₹8.5 per litre and on ATF exports to ₹14.5 per litre from ₹7.5 per litre, while reducing the levy on petrol exports to ₹2.5 per litre from ₹4 per litre.

There is no change in the existing excise duty rates on petrol and diesel meant for domestic consumption.

The windfall tax was introduced to ensure adequate domestic availability of petroleum products and discourage exports during periods of elevated global crude oil prices.

It is reviewed every fortnight based on changes in international oil prices and refining margins.