Government Raises Windfall Tax On Diesel, ATF Exports; Petrol Levy Unchanged

The Government on June 15 raised the export duty on diesel to Rs 14 per litre from Rs 13.5 per litre earlier and that on aviation turbine fuel (ATF) to Rs 12.5 per litre from Rs 9.5 per litre earlier effective June 16.The rate of duty on exports of petrol is however unchanged and it continues to be Rs. 1.5 per litre. There is no change in the rate of duty on exports of petrol and it continues to be at Rs 1.5 per litre. The Finance Ministry in a notification said the duty hikes will be effective from June 16. Also, there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.As per the Finance Ministry notification, "The rates for the next fortnight beginning 16th June, 2026 have been notified by the Central

government. Consequently, the rate of duty will be Rs 14 per litre (SAED - Rs 14; RIC - Nil) on exports of diesel and Rs 12.5 per litre (SAED only) on exports of ATF. There is no change in the rate of duty on exports of petrol and it continues at Rs 1.5 per litre (SAED - Rs 1.5; RIC - Nil).There is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption."

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The move is aimed at not allowing exporters to take undue advantage due to price differences. C rude oil prices had surged since the beginning of the war. Crude oil prices had spiked over 50 percent during the West Asia crisis and currently are trading below 83 dollars per barrel after the announcement of the US-Iran peace deal. Windfall tax is to ensure domestic availability of petroleum products by disincentivising exports. Analysts believe this decision is a well thought fiscal and energy-security measure.