By Admin 
- Central government increased windfall tax on diesel and ATF.
- Petrol export duty reduced, while that of diesel-ATF increased.
- This decision was taken to ensure domestic supply and control the profits of oil companies.
- This will not have any direct impact on retail fuel prices.
Diesel-ATF Export Duty Hike: Taking a big decision, the Central Government has today increased the windfall tax on diesel and ATF (Air Turbine Fuel). The new windfall tax has come into effect from today, July 16. Along with increasing the export duty on diesel and aviation turbine fuel (ATF), the government has reduced the tax on export of petrol. The government has taken this decision at a time when global crude oil prices are rising once again amid geopolitical tension.
new windfall tax
According to the latest notification issued by the Finance Ministry, the export duty on petrol has been reduced from Rs 4 per liter to Rs 2.5 per liter. At the same time, export duty on diesel has been increased from Rs 8.5 per liter to Rs 15.5 per liter and levy on Aviation Turbine Fuel (ATF) has also been increased from Rs 7.5 per liter to Rs 14.5 per liter. With the change in windfall tax, the government has not made any change in fuel prices. Their rates are stable across the country.
Why did the government take this decision?
The government regularly reviews the windfall tax every 15 days based on the prices of crude oil in the international market. The government’s objective of increasing the windfall tax is to ensure that oil companies do not sell all the fuel to foreign countries in the pursuit of profit and that there is sufficient stock of it within the country. When crude oil prices start skyrocketing in the global markets, the margins of refining companies in the country increase significantly.
These companies start earning huge profits by selling diesel and ATF at expensive prices in foreign countries. If exports increase too much due to the greed for profit, there may be a shortage of fuel in the country. To avoid such a situation, the government charges double tax on exports so that it becomes less profitable for companies to sell oil abroad and domestic needs can also be met.
impact on common consumers
Since this is a tax applicable on fuel export, it does not have any impact on the retail prices of petrol and diesel. That means it has no direct impact on the general public.
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