Diesel, ATF Export Tax Increased by Rs 7/L Amid Escalating US-Iran Conflict

New Delhi: After global crude oil prices surged amid the ongoing crisis in the Middle East between the US and Iran, the government on Wednesday raised windfall taxes on diesel and aviation turbine fuel (ATF) exports while cutting the levy on petrol exports, effective July 16, in its latest fortnightly review of windfall tax.

Did the government hike diesel, ATF export tax? 

The escalation of the US-Iran War has increased tensions in the Middle East. This renewed conflict has also fueled the rise in crude oil prices, and amid rising oil prices, the Indian government has taken a major decision regarding petrol and diesel. The government has significantly increased the windfall tax on the export of diesel and aviation fuel (ATF), raising it by up to Rs 7 per litre. The government order stated that this tax increase was due to the surge in crude oil prices.

How much tax will be levied now?

According to reports, the government has increased the tax on diesel exports from Rs 8.5 per litre to Rs 15.5 per litre, while the windfall tax on aviation turbine fuel has been increased from Rs 7.5 per litre to Rs 14.5 per litre. These increased tax rates came into effect on Thursday, July 16. However, the windfall tax on petrol has been reduced to Rs 2.5 per litre from Rs 4 per litre.

Is this the first time?

The government has taken similar decisions several times before due to the worrying global situation and rising crude oil prices. In July, when the US-Iran war briefly subsided, the government increased the windfall tax on petrol exports, while reducing it on diesel and ATF. Now, it has been increased again, effective July 16.

What impact will this have on the common man's pocket?

Windfall Tax is an additional tax imposed by the government on companies or industries, aimed at ensuring fuel availability in the domestic market and preventing exporters from taking excessive advantage of international prices. This means that this government decision will not result in any increase in petrol and diesel prices within the country.

What is the price of petrol and diesel today?

In New Delhi, petrol is Rs 102.12 per litre and diesel is Rs 95.20 per litre. In Kolkata, petrol price is Rs 113.48 per litre and diesel price is Rs 99.82 per litre. In Mumbai, petrol is being sold at Rs 111.21 per litre, while diesel is being sold at Rs 97.83 per litre; whereas in Chennai, petrol is Rs 107.78 and diesel is Rs 99.56 per litre.