Excise duty on diesel exports cut to Rs 23/litre, ATF exports to Rs 33/litre

New Delhi (TIP): The Indian government has cut the windfall gains tax on the export of diesel to Rs 23 per litre and aviation turbine fuel to Rs 33/litre, effective from May 1.
The finance ministry, in a statement, said there will be no change in existing excise duty rates on petrol and diesel for domestic consumption.
The special additional excise duty on export of diesel was reduced to Rs 23 per litre from Rs 55.5 per litre, and aviation turbine fuel to Rs 33 per litre from Rs 42 per litre.
The special additional excise duty on export of diesel was reduced to Rs 23 per litre from Rs 55.5 per litre, and aviation turbine fuel to Rs 33 per litre from Rs 42 per litre.
The government had, on March 26, imposed an export duty at Rs 21.50 a litre on diesel, and on ATF at Rs 29.5 a litre. In a review on April 11, the duties were hiked to Rs 55.5/litre and Rs 42/litre, respectively.
The windfall tax was levied to increase domestic availability of the fuel amid the US-Israel and Iran war.
The levies were also aimed at not allowing exporters to take undue advantage due to price differences, as globally crude oil prices had risen since the beginning of the war.
On February 28, the United States and Israel launched military strikes against Iran, triggering sweeping retaliation from Tehran. Crude oil prices have surged to a four-year high of USD 126 per barrel, from about USD 73 per barrel before the war.
Jet fuel price for international airlines up by 5 per cent in 2nd straight monthly hike
The price of Aviation Turbine Fuel (ATF), or jet fuel, for international airlines was increased by 5 per cent on Friday, marking the second straight monthly rise as oil companies pass on the global surge in energy prices in a calibrated manner.
There is no change in the ATF price for domestic airlines. ATF prices have been increased by USD 76.55 per kilolitre, or 5.33 per cent, to USD 1511.86 per kl in Delhi, home to India’s busiest airport, according to state-owned oil firms.
This follows the doubling of rates on April 1. On that day, rates for domestic airlines were hiked by 25 per cent to Rs 104,927.18 per kl. Jet fuel prices were deregulated more than two decades ago, and since then, the rates have been aligned with benchmark international prices, as per a written understanding with the airlines. But since the West Asia crisis-induced surge in global energy prices warranted the steepest increase ever to be made in the ATF prices, the government and state-owned oil companies decided to adopt a calibrated approach, industry sources said.