Amid escalating tensions in West Asia over the US-Iran war, the government announced an increase in the windfall tax on diesel and aviation turbine fuel (ATF) exports. However, the Center also announced that it will reduce petrol tax for two weeks, starting Thursday, July 16.
Based on the Official Gazette issued by the Ministry of Finance, the rate of Special Additional Duty (SAED) on diesel exports has been increased to $15.5 liters of $8.5 litres.
Likewise, the SAED on ATF exports was raised to $14.5 per litre $7.5 per liter until July 15. Follow live updates on the US-Iran war
At the same time, export duties on gasoline were reduced to $2.5 per litre $4 per litre.
The ministry added that there will be no change in the current duty rates on gasoline and diesel authorized for domestic consumption.
This rise in windfall gains and jet fuel comes as the conflict between the United States and Iran escalated last week.
The United States and Iran launched new strikes in the region and reimposed a blockade on the Strait of Hormuz, a key passage for 20 percent of the world’s oil and gas supplies.
The government had earlier, on March 27, imposed export duties on diesel and ATF and revised the prices every two weeks. From May 16 onwards, export duties were also imposed on petrol.
The increase in the windfall tax is also intended to ensure that exporters do not unjustly benefit from price differentials caused by rising crude oil prices. According to the government, this tax increase is also aimed at ensuring the availability of petroleum products locally.
Earlier this month, following the de-escalation of the war and the reopening of the Strait of Hormuz, fuel prices fell across industries in India.
Prices for commercial liquefied petroleum gas (LPG) used in hotels and restaurants have fallen $$183.50 per cylinder weighing 19 kg, news agency PTI reported.
Nayara Energy, India’s largest private fuel retailer, has reduced petrol prices by $5 per liter and diesel at a rate $3 via its national network.
Moreover, the price of ATF was reduced by $5 per litre.
