Government Increases Windfall Tax on Diesel and Aviation Fuel Amid Global Tensions

Significant Hike in Export Duties Announced

New Delhi: On Saturday, the government announced an increase in the export duty, also known as windfall tax, on diesel to Rs 55.5 per litre and on aviation fuel (ATF) to Rs 42 per litre.

According to a notification from the finance ministry, these new duty rates will take effect immediately.

Previously, on March 26, the government had set an export duty of Rs 21.50 per litre on diesel and Rs 29.5 per litre on ATF. These measures were introduced to enhance the domestic supply of fuel in light of the ongoing conflict in West Asia.

The duties were also intended to prevent exporters from exploiting price disparities, as global crude oil prices have surged since the conflict began.

On February 28, military actions were initiated by the United States and Israel against Iran, leading to significant retaliatory measures from Tehran.

A ceasefire agreement was reached on April 8 between Iran, the United States, and Israel, lasting two weeks, amidst the ongoing turmoil in the Middle East that has impacted the global energy sector.