India has raised windfall taxes on the exports of diesel and aviation turbine fuel (ATF) by Rs 7 per litre each as global energy prices surged following escalation in West Asia and closure of the Strait of Hormuz. The government, however, has cut the levy on petrol exports.
The export duty on diesel has been raised to Rs 15.5 per litre from Rs 8.5 per litre, while the aviation turbine fuel duty has been raised to Rs 14.5 per litre from Rs 7.5 per litre.
The government reduced the export duty on petrol from Rs 4 per litre to Rs 2.5 per litre. The revised rates will be effective July 16.
The changes were part of the government's fortnightly review of windfall taxes, which are linked to the international fuel prices and refining margins. The latest revision comes after the crude oil prices jumped following tensions between the US and Iran this week.
The latest revision comes amid a sharp rise in global crude oil prices driven by escalating geopolitical tensions in the Middle East. Higher export duties are aimed at discouraging overseas shipments of diesel and jet fuel, ensuring adequate domestic supplies while allowing the government to capture a larger share of windfall gains earned by refiners.
India reviews windfall taxes on petroleum exports periodically in line with movements in international crude prices and refining margins. The latest changes reflect the government's effort to balance domestic fuel availability with evolving global market conditions.
Oil prices rise for fourth straight day
Oil prices rose for a fourth straight day on Thursday as US and Iran continue to trade missiles and drones amid fears of renewed full-scale conflict and supply disruptions in the Strait of Hormuz.
Brent crude futures climbed 33 cents, or 0.4 per cent, to $85.28 a barrel by 0026 GMT, while US West Texas Intermediate futures rose 42 cents, or 0.5 per cent, to $80.02 a barrel, according to Reuters.
The price of the commodity rose on Wednesday, before easing slightly, as US President Donald Trump reimposed a naval blockade on all Iranian ports.
