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India Hikes Windfall Taxes on Fuel Exports

Bloomberg Markets •
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India has increased windfall taxes on fuel exports, including petrol, diesel, and aviation turbine fuel (ATF), amid volatile global crude oil prices and geopolitical tensions.

The revised duties, effective immediately, aim to stabilize domestic energy supplies by discouraging local refiners from prioritizing lucrative foreign sales over domestic requirements. The tax on petrol exports has risen to Rs 3.5 per litre.

Export duties on diesel have jumped significantly to Rs 25.5 per litre from Rs 15.5 per litre, and ATF duty has increased to Rs 22 per litre from Rs 14.5 per litre. These adjustments follow previous revisions in July, where diesel and ATF levies were raised, and petrol duties were lowered, reflecting fluctuating global oil prices and refining margins.