The Central Government on Wednesday increased windfall taxes on diesel and aviation turbine fuel (ATF) exports while lowering the levy on petrol exports, with effect from Thursday (July 16), as part of its latest fortnightly review of the windfall tax regime.
According to a Finance Ministry notification issued in this regard, the export duty on petrol has been reduced to Rs 2.5 per litre from Rs 4 per litre.
The duty on ATF exports has been raised from Rs 7.5 per litre to Rs 14.5 per litre, while the windfall tax on diesel exports has been increased from Rs 8.5 per litre to Rs 15.5 per litre.
The revision reflects heightened volatility in global oil markets.
Brent crude rose about 2 per cent to a one-month high of $84.73 a barrel on Wednesday after the United States resumed a naval blockade of Iran, raising concerns over oil supply through the Strait of Hormuz, a key shipping route that handled around one-fifth of global oil flows before the conflict.
Prices were also supported by renewed geopolitical tensions and attacks on oil tankers. However, concerns over inflation and weakening global demand limited further gains.
Fuel markets have also come under pressure from higher diesel refining margins driven by supply disruptions, including reduced shipments from Russia.
Earlier, on July 1, state-owned oil marketing companies (OMCs) had cut ATF prices by about Rs 5 per litre following a decline in global crude oil prices amid easing geopolitical tensions in West Asia.
