India Adjusts Windfall Taxes on Fuel Exports Amid Global Market Fluctuations

The Indian government has announced a revision of windfall gains taxes on various fuel exports, effective for the two-week period beginning October 31. This update includes an increase in the special additional excise duty for diesel and jet fuel shipments.

Specifically, the tax on diesel exports rose to 11.5 rupees per litre, up from 8.5 rupees. Aviation turbine fuel saw a smaller increase, moving from 10.5 rupees to 11 rupees per litre. Conversely, the levy on petrol exports was completely removed, dropping from 2.5 rupees to nil.

These tax rates are reviewed every fortnight based on the average global prices of crude oil and refined products. The system was originally implemented in March to discourage companies from selling fuel abroad at the expense of the domestic market during the crisis in West Asia.

While export duties have shifted, the finance ministry confirmed that there are no changes to the excise duties applied to petrol and diesel sold for consumption within India.