India Imposes Windfall Tax on Petrol Exports Amid Rising Global Oil Prices
Govt Imposes Rs 3/Litre Windfall Tax On Petrol Exports, Cuts Diesel, ATF Levies
News 18
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The Indian government has imposed a windfall tax of ₹3 (approximately $0.04) per litre on petrol exports, effective May 16. Simultaneously, it reduced the export levies on diesel and aviation turbine fuel (ATF) to ₹16.5 and ₹16 per litre, respectively, in response to soaring global crude oil prices due to ongoing conflicts in West Asia.
- 01The windfall tax on diesel exports has been reduced from ₹23 to ₹16.5 per litre.
- 02The levy on ATF exports has decreased from ₹33 to ₹16 per litre.
- 03The windfall tax is aimed at increasing domestic fuel availability amid rising global crude oil prices.
- 04Crude oil prices have surged above $100 per barrel, significantly impacting export duties.
- 05This is the first imposition of a special additional excise duty on petrol exports since the West Asia conflict began.
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On Friday, the Indian government announced a new windfall tax of ₹3 (approximately $0.04) per litre on petrol exports, effective May 16. This decision comes amid rising global crude oil prices, which have exceeded $100 per barrel due to ongoing conflicts in West Asia, particularly following airstrikes by the United States and Israel against Iran. The Finance Ministry also reduced the export levies on diesel and aviation turbine fuel (ATF) to ₹16.5 and ₹16 per litre, respectively. Previously, the export duty on diesel was ₹23 per litre and ₹33 per litre for ATF. The government aims to ensure adequate domestic fuel availability by discouraging exports during this period of heightened global prices. The windfall tax marks the first time a special additional excise duty has been applied to petrol exports since the onset of the conflict. Despite these changes, excise duty rates for petrol and diesel intended for domestic consumption remain unchanged.
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The imposition of the windfall tax is expected to limit petrol exports, ensuring more fuel is available for domestic consumption, which could stabilize local prices.
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