India Adjusts Windfall Taxes Amid Shifting Global Oil Prices

India has modified its windfall taxes on diesel and aviation turbine fuel exports, reducing them as global oil prices decline. Meanwhile, petrol export duties have increased. The changes aim to balance exports with domestic supply needs. The tax adjustments reflect economic forecasts and geopolitical developments impacting oil markets.

India has adjusted its windfall taxes on fuel exports amid decreasing global oil prices, following a government announcement on the new tariff structure.

The duty on diesel exports has been reduced to 8.5 rupees per litre from 14 rupees, while the levy on aviation turbine fuel has been slashed to 7.5 rupees per litre from the previous 12.5 rupees. Conversely, the export duty on petrol has risen to 4 rupees per litre from 1.5 rupees, ensuring a stable domestic supply.

The revised rates will take effect from July 1, aligning with forecasts of lower future oil prices, as cited by economists and analysts. The exemptions for specific regional exports have now been expanded to include Mauritius and Maldives.