Windfall tax on petrol exports cut to 0 after early August hike; diesel duty down ₹1.5/litre, ATF by ₹2.5/litre

The Indian government has reduced windfall gains tax on petrol, diesel and air turbine fuel exports for a fortnight starting August 15, following a recent hike in rates amid rising tensions due to the conflict in West Asia. The special additional excise duty (SAED) for diesel exports has been lowered to ₹25.5 per litre, down from ₹25.5 per litre, while ATF exports' SAED has been reduced to ₹22 per litre from ₹22 per litre.

Petrol exports duties were also decreased to ₹3.5 per litre from ₹2.5 per litre, which were increased on July 16. These measures were announced amid mounting tensions in West Asia and the government's decision to impose export duties on diesel and ATF on March 27, which were then revised every fortnight. The measures were implemented to protect Indian consumers from escalating fuel prices while ensuring domestic supplies.

The windfall tax was introduced to ensure the availability of petroleum products in the domestic market by discouraging exports during periods of supply uncertainty and maintaining sufficient fuel availability for domestic consumption.