India hikes windfall tax on Diesel and ATF exports
The Government of India has increased the windfall gains tax on exports of diesel and aviation turbine fuel (ATF), while keeping the levy on petrol unchanged for the next fortnight starting June 16.
According to a notification issued by the Finance Ministry, the special additional excise duty (SAED) on diesel exports has been raised to ₹14 per litre from the earlier ₹13.5 per litre. The SAED on ATF exports has also been increased significantly to ₹12.5 per litre from ₹9.5 per litre.
However, the duty on petrol exports remains unchanged at ₹1.5 per litre.
The revised tax structure will come into effect from June 16, while domestic fuel prices and duties on locally consumed petrol and diesel remain unchanged.
The windfall tax regime was first introduced in 2022 and has since been reviewed periodically, usually every fortnight, depending on global crude oil price movements and geopolitical conditions.
Officials said the latest adjustment aims to balance export incentives with domestic fuel availability, ensuring that local supply is not adversely impacted by global price fluctuations. The move also seeks to discourage excessive exports during periods of elevated international demand and price volatility.
The policy comes amid ongoing geopolitical tensions in West Asia, which have continued to influence global crude oil markets and fuel pricing dynamics.
The government’s decision reflects its broader strategy of maintaining stability in domestic energy supplies while responding flexibly to international market conditions.
