Diesel export duty hiked to ₹14/litre; ATF levy raised to ₹12.5/litre

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

According to a Finance Ministry notification, the special additional excise duty (SAED) on diesel exports has been raised to ₹14 per litre from ₹13.5 per litre, while the levy on ATF exports has been increased to ₹12.5 per litre from ₹9.5 per litre.

The duty on petrol exports remains unchanged at ₹1.5 per litre.

The revised rates came into effect from June 16.

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

The latest revision comes a fortnight after the government had reduced the export duties on petroleum products.

Effective June 1, the SAED on petrol exports was cut by half to ₹1.5 per litre from ₹3 per litre, while the levy on diesel was lowered to ₹13.5 per litre from ₹16.5 per litre and that on ATF to ₹9.5 per litre from ₹16 per litre.

The government had first imposed the export duty on diesel and ATF on March 26 amid the conflict involving the US, Israel and Iran.

The levy on petrol exports was introduced later on May 16.

The export duties are reviewed every fortnight and are linked to movements in international prices of crude oil and petroleum products.

The windfall tax is aimed at ensuring adequate domestic availability of petroleum products by discouraging exports when global prices rise sharply.

The measure is also intended to prevent exporters from benefiting excessively from higher international fuel prices.

The government had initially imposed an export duty of ₹21.5 per litre on diesel and ₹29.5 per litre on ATF on March 26.

In a subsequent review on April 11, the levies were increased to ₹55.5 per litre and ₹42 per litre, respectively, before being gradually reduced as international prices moderated.