The energy sector is still in turmoil. In the meantime, the Indian government has given a big assurance to fuel experts. The government has reduced the windfall tax on aviation turbine fuel (ATF) and automobile fuel (petrol-diesel). However, there has been no change in the excise duty on petrol and diesel for domestic use. According to a notification issued by the Finance Ministry late on Friday night, the revised rates have been implemented from Saturday.
How much has been cut in the windfall tax?
According to this change, the windfall gains tax on the export of ATF has been reduced by Rs 2.5 per liter to Rs 19.5 per liter. The government has maintained the special additional excise duty on diesel exports at Rs 24 per liter. Similarly, the Road and Infrastructure Cess has been reduced by Rs 1.5 per litre to zero. This tax on petrol exports has also been made zero.
No change at the domestic level
The government said that there is no change in the excise duty rates on petrol and diesel for domestic consumption at present. The tax rates are revised every 15 days based on international prices after the last review of crude oil, petrol-diesel and aviation turbine fuel.
Petrol and diesel prices today
Even after the volatility in the global energy market, petrol and diesel prices in India remained stable till August 15. Petrol is being sold at Rs 102.12 per litre in Delhi and Rs 111.2 per litre in Mumbai. Similarly, diesel prices are below Rs 100 per litre in most metros. Notably, the windfall tax was initially increased after the energy crisis in West Asia, but has now been reduced again after the energy subsidy. Earlier this week, the central government had increased export duty on petrol, diesel and aviation turbine fuel. Similar to previous revisions, these duties have been adjusted in response to changes in refining margins and international prices.
