New Delhi: Following a fortnightly review, the Central government lowered the windfall tax on gasoline, diesel, and aviation turbine fuel (ATF) exports, giving fuel exporters some respite in the face of shifting global energy market conditions.
The Finance Ministry announced that, as of June 1, the special additional excise tax (SAED) on gasoline exports has been reduced by 50% to ₹1.5 per litre from ₹3 per litre. Diesel export duties have been dropped from ₹16.5 per litre to ₹13.5 per litre, and aviation turbine fuel export duties have been lowered from ₹16 to ₹9.5 per liter.
Additionally, the government declared that there would be no road and infrastructure cess on exported gasoline and diesel. The current excise duty rates that apply to gasoline and diesel intended for residential use have not changed.
During a time of increased geopolitical tensions in West Asia, the windfall tax was first implemented to guarantee sufficient domestic availability of petroleum products and to deter excessive exports. Preventing exporters from unfairly profiting from high global fuel costs was another goal of the policy.
Following a dramatic increase in crude oil prices brought on by the war among the United States, Israel, and Iran, the government levied export tariffs on diesel and ATF in March. In recent weeks, crude prices have stayed above $100 per barrel, compared with around $73 per barrel before the escalation of hostilities.
The latest reduction reflects improving supply conditions while maintaining safeguards for domestic fuel availability.
Source – Newspoint
