Centre reduces windfall tax on petrol, diesel, ATF exports
What's the story
The Indian government has reduced the windfall tax on petrol exports from ₹1.5 to ₹0.5 per liter for the next fortnight, starting September 16. The levy on diesel exports has also been slashed by ₹5 to ₹20 per liter while that on aviation turbine fuel (ATF) has been revised downwards from ₹19 to ₹15 per liter. The changes were announced on Wednesday and come as part of a regular review process introduced since March amid the West Asia crisis.
Purpose
What are export levies?
The export levies were introduced to ensure adequate domestic availability of retail fuels by discouraging exports.
The rates are revised every fortnight based on the average international prices of crude oil, petrol, diesel, and ATF during that period.
The latest changes come after a sharp rise in crude oil prices over the last two weeks due to conflict in the Middle East and damage to Saudi Arabian pipelines.
Price surge
Brent crude oil prices
The price of Brent crude oil stood at $107.8 per barrel on Wednesday, reflecting the recent spikes in international markets.
The government has been closely monitoring these changes and adjusting export duties accordingly to maintain a balance between domestic supply and international market trends.