Amid escalating tensions in West Asia due to the US-Iran war, the government has announced a hike in the windfall gains tax on exports of diesel and aviation turbine fuel (ATF). However, the Centre has also announced that it will lower the petrol levy for the fortnight, effective from Thursday, July 16.
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Based on the official gazette released by the Ministry of Finance, the rate of Special Additional Excise Duty (SAED) on diesel exports has been increased to ₹15.5 a litre from ₹8.5 a litre.
Similarly, SAED on ATF exports has been raised to ₹14.5 per litre from ₹7.5 per litre till July 15. Track US Iran war LIVE updates
Meanwhile, the export duty on petrol has been cut to ₹2.5 per litre, from ₹4 per litre.
The ministry added that there will be no change in the existing duty rates on petrol and diesel cleared for domestic consumption.
This hike in windfall gains and jet fuel comes as the conflict between the United States and Iran escalated last week.
The US and Iran launched fresh strikes in the region and reinstated the blockade on the Strait of Hormuz, which is a key passage for 20 per cent of the world’s oil and gas supply.
The government had earlier, on March 27, imposed an export duty on diesel and ATF and revised the rates every fortnight. And from May 16 onwards, an export duty was also imposed on petrol.
The hike in the windfall tax is also intended to ensure exporters are not taking undue advantage of price differences arising from the rise in crude oil prices. According to the government, this tax hike was also intended to ensure domestic availability of petroleum products.
Earlier this month, following the de-escalation of the war and the reopening of the Hormuz Strait, fuel prices across industries in India fell.
Prices of commercial LPG, used in hotels and restaurants, were cut by ₹183.50 per 19-kg cylinder, news agency PTI reported.
Nayara Energy, India’s largest private fuel retailer, reduced petrol prices by ₹5 per litre and diesel by ₹3 across its nationwide network.
Furthermore, the price of ATF was reportedly reduced by ₹5 per litre.
