Centre Raises Windfall Tax on Diesel and ATF

The Central Government has revised windfall taxes on petroleum exports amid escalating tensions in West Asia and a sustained rise in global crude oil prices. Effective from July 16 for a period of two weeks, the windfall tax on diesel exports has been increased from ₹8.50 to ₹15.50 per litre, while the levy on Aviation Turbine Fuel (ATF) has been raised from ₹7.50 to ₹14.50 per litre. At the same time, the export duty on petrol has been reduced from ₹4 to ₹2.50 per litre.

Windfall tax is imposed when oil companies earn extraordinary profits due to a sharp increase in international crude oil prices. The government collects a portion of these additional gains to support domestic requirements and welfare programmes. Meanwhile, global crude prices continued to climb for the fourth consecutive day amid concerns over disruptions around the Strait of Hormuz. Brent crude crossed $85 per barrel, while US West Texas Intermediate (WTI) crude rose above $80 per barrel, reflecting continued uncertainty in global energy markets.