Centre raises diesel, ATF export duties
What's the story
In response to rising global crude oil prices, India has increased the windfall taxes on diesel and aviation turbine fuel (ATF) exports by ₹7 per liter each. The new rates will be effective from July 16. The government has also reduced the export duty on petrol exports from ₹4 per liter to ₹2.5 per liter as part of its fortnightly review of windfall taxes linked to international fuel prices and refining margins.
Tax revision
Export duty on diesel from ₹8.5 to ₹15.5 per liter
The government has hiked the export duty on diesel from ₹8.5 per liter to ₹15.5 per liter and on ATF from ₹7.5 per liter to ₹14.5 per liter.
The changes come as crude oil prices have surged amid escalating tensions between the US and Iran this week.
Brent crude touched nearly $85 a barrel before easing slightly, after US President Donald Trump reimposed a naval blockade on Iranian ports and Iran retaliated with strikes against US infrastructure in the region.
Supply concerns
Government cites higher diesel refining margins as reason for hike
The developments have raised fears over oil supplies passing through the Strait of Hormuz, a critical global shipping lane that carries a large chunk of the world's crude.
The government has also cited higher diesel refining margins due to supply disruptions such as lower Russian exports and tighter fuel markets as reasons for raising export duties on diesel and jet fuel.