The government has raised the windfall gains tax on exports of petrol and diesel and has marginally reduced the levy on aviation turbine fuel for the next fortnight. The Finance Ministry issued a notification stating the changes will be effective from September one. The move is part of measures introduced amid disruptions in West Asia to stabilise domestic supplies.

The rate of special additional excise duty and the road and infrastructure cess on export of diesel now stands at Rs 25 per litre, up from Rs 24 per litre. The special additional excise duty on export of aviation turbine fuel has been set at Rs 19 per litre, down from Rs 19.5 per litre earlier. The duty on petrol exports has been increased to Rs one point five per litre, from zero earlier, with effect from September one.

The Finance Ministry noted that the export levies, first imposed on diesel and aviation turbine fuel on March 27, have been revised every fortnight since, and that a similar levy on petrol began on May 16. There is no change in the duty rates on petrol and diesel cleared for domestic consumption, the ministry said, maintaining measures to keep home supplies steady. Officials framed the windfall tax to discourage exports that could reduce availability at home as global crude prices rose after the conflict began in West Asia.

The imposition was intended to prevent exporters from taking undue advantage of international price gaps and to bolster domestic availability of key fuels. Analysts and market participants will watch forthcoming fortnightly revisions for signs of further adjustments. The notification emphasised that the changes apply only to exports and do not alter inland excise or retail pricing for consumers.