Now Reading: Govt revises windfall tax on petrol, diesel exports
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Govt revises windfall tax on petrol, diesel exports
The central government has revised the windfall gains tax on petrol and diesel exports, effective from 16 October. The tax on petrol exports has been increased to Rs 2.5 per litre, while the tax on diesel exports has been reduced to Rs 8.5 per litre from Rs 16 per litre, according to the Central Board of Indirect Taxes and Customs.
The windfall tax on aviation turbine fuel remains unchanged. The rates are revised every fortnight based on average crude oil prices over the previous 15 days. No change was made to duty rates on petrol and diesel cleared for domestic consumption.
The revision comes with crude oil prices around $95 per barrel, boosted by the US-Iran war and the Russia-Ukraine war affecting freight and insurance rates, according to LSEG shipping and oil price data cited by Reuters.
Indian Opinion Analysis
The sharp cut in the windfall tax on diesel from Rs 16 to Rs 8.5 per litre signals that global diesel margins may have narrowed significantly over the past fortnight. Petrol exporters face a higher levy, suggesting a different price outlook for that fuel. The fortnightly revision formula means these rates are provisional, the next reset in two weeks will reflect any further moves in crude. The CBIC has not indicated whether the domestic fuel prices consumers pay will be affected by these export adjustments.
With crude holding near $95, the next fortnight's average will determine whether these rates hold or shift again.
Source: economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
