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India Hikes Windfall Tax on Diesel, Aviation Fuel Exports Sharply

India significantly raises export duties on diesel and aviation turbine fuel.

Apr 12
2 min read
India Hikes Windfall Tax on Diesel, Aviation Fuel Exports Sharply

Top Summary

  • What happened: India increased the export duties on diesel and aviation turbine fuel (ATF) effective immediately on April 11.
  • Why it matters: The move aims to address prevailing economic circumstances, as cited by the Department of Revenue.
  • What changes for people: Increased costs related to diesel and ATF exports. Petrol export duty remains unchanged.
  • Who is affected: Exporters of diesel and aviation turbine fuel are most directly impacted by these changes.

Diesel Export Duty Soars

India has sharply increased the export duties on diesel. The windfall tax has more than doubled.

The duty on diesel has risen from Rs 21.5 per litre to Rs 55.5 per litre. This is a significant increase.

Aviation Fuel Tax Increased

The export duty on aviation turbine fuel (ATF) has also been raised. This change is also effective immediately on April 11.

The new levy on ATF is now Rs 42 per litre, up from the previous Rs 29.5 per litre.

Petrol Export Duty Unchanged

Notably, the export duty on petrol remains unchanged. It remains at nil.

This means there is no export duty on petrol.

Official Notification

The Finance Ministry issued a notification regarding these changes on Saturday, April 11.

 

The Department of Revenue issued notifications on 11 April citing the need for immediate action under prevailing circumstances.

 

Department of Revenue's Rationale

The Department of Revenue emphasized the urgency of the situation.

The notifications cited the need for immediate action. This was due to prevailing circumstances.

What to Watch Next

Monitor upcoming government statements and potential adjustments to energy policy. Track how these duty changes influence Indian exports and domestic fuel prices.