India raises windfall tax on petrol to Rs 3.5/litre, diesel to Rs 24/litre
Centre increases export duties on petrol, diesel and ATF as part of fortnightly review amid rising global oil prices.
نظرة سريعة
India’s government raised windfall export taxes on petrol to Rs 3.5/litre and diesel to Rs 24/litre, including ATF, effective August 3, as part of a fortnightly review to capture high refiner profits amid rising global oil prices.
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لماذا يهم
India periodically adjusts windfall taxes on petroleum products to capture excess profits when global oil prices rise.
The government has decided to raise the windfall tax on fuel exports, now charging Rs 3.5 per litre for petrol and a steep Rs 24 per litre for diesel. This increase is part of the Centre's routine assessment of petroleum taxes, aimed at taxing the high profits made by refiners amid rising global energy prices.
India on Monday raised windfall taxes on petrol, diesel and aviation turbine fuel (ATF) exports with effect from August 3, according to Finance Ministry notifications.
The export duty on petrol has been increased to Rs 3.5 per litre from Rs 2.5 per litre. The windfall tax on diesel exports has been raised to Rs 25.5 per litre, including the Road Infrastructure Cess (RIC), from Rs 15.5 per litre. The levy on ATF exports has also been increased to Rs 22 per litre from Rs 14.5 per litre.
The latest revision is part of the Centre’s fortnightly review of windfall taxes on petroleum products. The government adjusts these levies based on changes in global oil prices, export margins and market conditions.
Windfall taxes are imposed on petroleum products when refiners and producers benefit from unusually high gains due to elevated international energy prices.
