The Centre has modified export taxes on diesel, petrol, and aviation turbine fuel (ATF) in response to soaring global oil prices due to the US-Iran conflict. Effective from Thursday, the Finance Ministry notification revealed an increase in the export duty on diesel to Rs 15.5 per litre from Rs 8.5 per litre, and on ATF to Rs 14.5 per litre from Rs 7.5 per litre.
Simultaneously, the government has reduced the export duty on petrol to Rs 2.5 per litre from Rs 4 per litre. These revised rates came into effect on July 16, as stated in the notification. The adjustments follow a significant surge in global crude oil prices triggered by heightened tensions between the US and Iran.
Oil prices experienced a climb on Wednesday, slightly easing thereafter, as US President Donald Trump reimposed a naval blockade on Iranian ports, leading to retaliatory strikes by Iran on US infrastructure in the region. Earlier this month, the government had revised windfall taxes on petroleum product exports, increasing the levy on petrol while decreasing duties on diesel and ATF.
The Special Additional Excise Duty (SAED) on petrol exports was raised to Rs 4 per litre from Rs 1.5 per litre. In contrast, the export duty on diesel was lowered to Rs 8.5 per litre from Rs 14 per litre, and the levy on ATF exports was reduced to Rs 7.5 per litre from Rs 12.5 per litre. The government regularly reviews windfall taxes on domestically produced crude oil and petroleum product exports to adjust levies in line with international crude prices and refining margins.
