New Delhi: The Centre has revised windfall taxes on petroleum product exports, increasing the duty on diesel and aviation turbine fuel (ATF) while providing relief on petrol exports. The revised rates will come into effect from July 16, following the government’s latest fortnightly review of export levies linked to global crude prices and refining margins.
Under the new structure, the export duty on diesel has been raised from ₹8.5 per litre to ₹15.5 per litre, marking an increase of ₹7 per litre. A similar hike has been announced for aviation turbine fuel (ATF), with the levy increasing from ₹7.5 per litre to ₹14.5 per litre.
In contrast, exporters of petrol will benefit from a reduction in duty, with the levy lowered from ₹4 per litre to ₹2.5 per litre.
The revision comes at a time when international crude oil prices have witnessed a sharp rise amid growing geopolitical tensions in West Asia. Concerns over possible disruptions to global energy supplies have intensified after the recent escalation involving the United States and Iran, coupled with worries surrounding the strategic Strait of Hormuz, a key route for global oil shipments.
The government’s windfall tax mechanism is reviewed every two weeks and is designed to reflect changes in global energy prices and the profitability of fuel exports. As international crude prices rise, export duties are periodically adjusted to align with prevailing market conditions.
Meanwhile, global oil markets extended their gains for a fourth consecutive session on Thursday. According to Reuters, Brent crude futures climbed 33 cents, or 0.4 per cent, to $85.28 per barrel, while US West Texas Intermediate (WTI) crude advanced 42 cents, or 0.5 per cent, to $80.02 per barrel.
Market analysts attribute the continued rise in crude prices to fears that the ongoing exchange of missiles and drones between the United States and Iran could escalate into a broader conflict, potentially affecting oil production and transportation through the Strait of Hormuz.
The latest tax revisions are expected to influence export economics for Indian refiners while reflecting the government’s response to rapidly changing conditions in the global energy market.
