Government Sets ₹29.5/Litre Tax On ATF, ₹21.5/Litre On Diesel Exports

India has introduced fresh windfall taxes on fuel exports, targeting aviation turbine fuel and diesel. The decision reflects the government’s strategy to ensure domestic availability while curbing extraordinary gains from international sales amid volatile global energy markets.

Policy Update On Fuel Exports
The new levy sets ATF export tax at ₹29.5 per litre and diesel export tax at ₹21.5 per litre. These measures are part of India’s dynamic taxation framework, adjusted regularly to align with global crude price fluctuations and domestic supply priorities.

Impact On Industry And Market
The windfall tax is expected to influence refiners and exporters, particularly those with significant overseas contracts. While it may reduce export margins, the policy ensures that domestic consumers and industries are shielded from supply shortages and price spikes.

Key Highlights

• Windfall tax on ATF exports set at ₹29.5 per litre
• Windfall tax on diesel exports set at ₹21.5 per litre
• Aimed at balancing domestic supply and global demand
• Expected impact on refiners and exporters’ margins
• Part of India’s dynamic fuel taxation policy

Sources: Ministry of Finance, Government of India, Economic Times, Business Standard