The central government has today slashed windfall gains tax on petrol, diesel and air turbine fuel (ATF) exports for the fortnight, weeks after hiking the rate amid escalating tensions due to the war in West Asia.
The special additional excise duty (SAED) has been cut for the fortnight beginning 15 August, as follows:
On 3 August, the Centre hiked windfall gains tax on exports of petrol, diesel and ATF for the fortnight beginning the same day — SAED on export of diesel to ₹25.5 a litre, up from ₹15.5 a litre; and SAED on export of ATF to ₹22/litre, as against ₹14.5/litre earlier; while duty on petrol exports was raised to ₹3.5 per litre, from ₹2.5 per litre levied on July 16.
This came amid escalating tensions in West Asia and following the government's move to impose an export duty on diesel and ATF on March 27 and revised the rate every fortnight. Beginning May 16, the levy was imposed on petrol exports.
At the time, the government cited supply disruptions caused by the effective closure of the Strait of Hormuz amid the conflict in West Asia. The measures were intended to shield Indian consumers from rising fuel prices while safeguarding domestic supplies. “The windfall tax was intended to ensure domestic availability of petroleum products by disincentivising exports amid the West Asia crises”, it said.
The Centre reviews windfall taxes on petroleum products every two weeks, adjusting the levies in response to movements in international crude prices, export margins and broader market conditions.
Windfall taxes are designed to capture extraordinary profits earned by refiners and producers when global energy prices surge. The policy also seeks to discourage excessive exports during periods of supply uncertainty and ensure sufficient fuel remains available for domestic consumption.
On 15 August (IST), Brent crude oil futures settled at $88.52 a barrel, up 1.67%. US futures finished at $82.40, up 1.42%.
Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br>
As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br>
Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br>
She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br>
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<br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in</a> <br> X/ Twitter handle: <a href="https://x.com/scribeJocelyn">@scribeJocelyn</a> <br> LinkedIn: <a href="https://in.linkedin.com/in/jocelyn-fernandes-journalist">LinkedIn</a>
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