Windfall gains tax on diesel, ATF exports up; petrol cut to nil

The Indian government has announced changes to the windfall gains tax on diesel and jet fuel exports, while reducing the tax on petrol to zero for the upcoming fortnight. The windfall gains tax, which includes special additional excise duty (SAED) and road and infrastructure cess, was introduced on March 27 to ensure the availability of petroleum products domestically amid the West Asia crisis.

Effective from October 31, the SAED on diesel exports has been increased to Rs 11.5 per litre from Rs 8.5 per litre, while the duty on ATF exports has been raised to Rs 11 per litre from Rs 10.5 per litre. In contrast, the duty on petrol exports has been reduced to zero from Rs 2.5 per litre for the next two weeks.

These changes in tax rates aim to maintain the domestic supply of petrol and diesel, despite the fluctuations in international crude oil prices. The government continues to maintain the excise duty on petrol and diesel for domestic consumption unchanged.