India hikes export duties on petrol, diesel and aviation fuel from Aug. 3

The Indian government raised the special additional excise duty on exported petrol, diesel and aviation turbine fuel effective August 3, while keeping domestic fuel taxes unchanged.

Starting August 3, the Centre will apply higher special additional excise duties on fuel exports, lifting diesel export duty to Rs 25.5 per litre, aviation turbine fuel to Rs 22 per litre, and petrol to Rs 3.5 per litre. Domestic fuel taxes are left untouched. These rates are part of a series of fortnightly revisions introduced after the March 27 export duty on diesel and ATF, which responded to heightened tensions in the Middle East.

Petrol exports have been taxed since mid-May. The government says the windfall tax is intended to keep sufficient petroleum products in the country and curb exporters’ gains from the global crude price surge. The duty hike comes as commercial LPG cylinder prices were cut for the second month in a row, easing costs for businesses in Delhi and Kolkata. The policy shift was discussed in a recent Cabinet Committee on Security meeting chaired by Prime Minister Narendra Modi, attended by senior ministers including Rajnath Singh and Nirmala Sitharaman, to assess supply-chain risks from conflicts in the Strait of Hormuz, Black Sea, Red Sea and Gulf of Aden.