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India on Friday imposed a windfall gains tax of ₹3 per litre on petrol exports for the first time since the start of the West Asia crisis, while cutting export duties on diesel and aviation turbine fuel (ATF), as the government moved to safeguard domestic fuel supplies amid elevated crude oil prices.
According to a Finance Ministry notification, the new rates will come into effect from May 16.
The government reduced the special additional excise duty (SAED) on diesel exports to ₹16.5 per litre from ₹23 per litre, while the levy on ATF exports was cut to ₹16 per litre from ₹33 per litre.
At the same time, the ministry said the road and infrastructure cess on exports of petrol and diesel would remain nil. There was also no change in duty rates on petrol and diesel sold in the domestic market.
The latest move comes as global crude oil prices have stayed above $100 per barrel following the escalation of the US-Israel and Iran conflict. Before the war began, crude prices were hovering around $73 per barrel.
The government had first imposed windfall taxes on diesel and ATF exports on March 26 to discourage excessive exports and ensure adequate domestic availability of petroleum products. Duties were later sharply increased in April before being partially rolled back in subsequent reviews.
Officials said the export levies were aimed at preventing refiners and exporters from taking undue advantage of the sharp rise in international fuel prices during the ongoing West Asia crisis.
The conflict intensified after the United States and Israel launched military strikes against Iran on February 28, triggering retaliation from Tehran and fuelling fears of supply disruptions in global energy markets.
The Finance Ministry said the windfall taxes were intended to ensure domestic fuel availability by disincentivising exports during the current geopolitical turmoil.
According to a Finance Ministry notification, the new rates will come into effect from May 16.
The government reduced the special additional excise duty (SAED) on diesel exports to ₹16.5 per litre from ₹23 per litre, while the levy on ATF exports was cut to ₹16 per litre from ₹33 per litre.
At the same time, the ministry said the road and infrastructure cess on exports of petrol and diesel would remain nil. There was also no change in duty rates on petrol and diesel sold in the domestic market.
The latest move comes as global crude oil prices have stayed above $100 per barrel following the escalation of the US-Israel and Iran conflict. Before the war began, crude prices were hovering around $73 per barrel.
The government had first imposed windfall taxes on diesel and ATF exports on March 26 to discourage excessive exports and ensure adequate domestic availability of petroleum products. Duties were later sharply increased in April before being partially rolled back in subsequent reviews.
Officials said the export levies were aimed at preventing refiners and exporters from taking undue advantage of the sharp rise in international fuel prices during the ongoing West Asia crisis.
The conflict intensified after the United States and Israel launched military strikes against Iran on February 28, triggering retaliation from Tehran and fuelling fears of supply disruptions in global energy markets.
The Finance Ministry said the windfall taxes were intended to ensure domestic fuel availability by disincentivising exports during the current geopolitical turmoil.
