The Central Government has once again revised the windfall tax on fuel exports, increasing the levy on diesel and aviation turbine fuel (ATF) while reducing the tax on petrol exports. The revised rates came into effect from July 16 as the government responds to rising global crude oil prices and seeks to safeguard domestic fuel supplies.
New Windfall Tax Rates Effective July 16
Under the latest revision, the export duties have been changed as follows:
Diesel Export Tax: Increased from ₹8.5 to ₹15.5 per litre
ATF (Jet Fuel) Export Tax: Increased from ₹7.5 to ₹14.5 per litre
Petrol Export Tax: Reduced from ₹4 to ₹2.5 per litre
The revised rates are applicable immediately from July 16.
Why Did the Government Increase the Windfall Tax?
The decision comes after a sharp rise in global crude oil prices. Brent crude climbed nearly 2% to $84.73 per barrel, touching a one-month high amid renewed geopolitical tensions and concerns over oil supplies through the Strait of Hormuz.
By raising export duties on diesel and ATF, the government aims to discourage excessive exports and ensure adequate fuel availability in the domestic market.
How Does India's Windfall Tax Work?
India's windfall tax is reviewed every 15 days based on global crude oil prices.
The tax is increased when crude oil prices rise sharply.
It is reduced when international oil prices decline.
The primary objective is to balance domestic fuel availability, control inflation, and regulate refinery export incentives.
Petrol Exporters Get Relief
Unlike diesel and ATF, the government has reduced the export duty on petrol. The move is expected to provide relief to refinery companies by improving export competitiveness and easing pressure on profit margins.
Will Petrol and Diesel Prices Change for Consumers?
The revised windfall tax applies only to fuel exports. Therefore, retail petrol and diesel prices in India are unlikely to witness any immediate impact due to this announcement.
Government increases diesel export tax to ₹15.5/litre
ATF export duty raised to ₹14.5/litre
Petrol export tax reduced to ₹2.5/litre
New rates effective July 16
Decision follows a sharp rise in global crude oil prices
No immediate impact expected on domestic petrol and diesel prices
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