India has increased windfall taxes on aviation turbine fuel (ATF) and diesel exports following further rises in global oil prices, marking a second revision since the levy was introduced on 26 March. The Special Additional Excise Duty (SAED) and related export duties have been raised in line with continued volatility in international fuel markets.
India has increased windfall taxes on aviation turbine fuel (ATF) and diesel exports, following a further rise in global oil prices since the levy was first introduced on 26 March.
According to notifications from the Ministry of Finance and the Central Board of Indirect Taxes & Customs, the Special Additional Excise Duty (SAED) on ATF exports has been raised to INR 42.00 per litre from INR 29.50 per litre.
Export taxes on diesel have also been sharply increased to INR 55.50 per litre from INR 21.50 per litre. This includes a rise in the SAED on diesel exports to INR 24.00 per litre from INR 18.50 per litre, alongside an increase in the Road and Infrastructure Cess to INR 31.50 per litre from INR 3.00 per litre.
The government initially imposed the windfall taxes on 26 March to discourage excessive exports and help ensure adequate domestic fuel availability, particularly as international prices have been rising faster than domestic rates. Officials have indicated that the duties are not fixed and may be revised periodically in line with global market movements.
The latest adjustment marks a second revision in a short period, reflecting continued volatility in global fuel markets and sustained pressure from higher international jet fuel and gasoil prices.
