Govt hikes windfall tax on diesel, ATF; petrol duty unchanged

In a recent development, the government has taken a significant step to regulate the export of petroleum products in the country. The export duty on diesel has been hiked to Rs 14 per litre from the earlier rate of Rs 13.5 per litre, while the duty on aviation turbine fuel has been increased to Rs 12.5 per litre from Rs 9.5 per litre earlier. These changes will come into effect from June 16, as part of the government's efforts to maintain a balance between domestic demand and export of fuel. The decision to hike the export duty is seen as a measure to discourage the export of diesel and aviation turbine fuel, thereby ensuring their availability in the domestic market. This move is likely to have a positive impact on the country's fuel supply, which has been affected by global events and geopolitical tensions. The government had initially imposed an export duty on diesel and aviation turbine fuel on March 26, in response to the crisis in West Asia, and the recent hike is a continuation of these efforts. The duty on petrol, however, remains unchanged, indicating that the government is taking a nuanced approach to managing the export of different types of fuel. The impact of this move will be closely watched, as it has the potential to affect not just the fuel market but also the overall economy. As the government continues to navigate the complexities of the global fuel market, it is likely that we will see further adjustments to the export duty and other policies in the coming months. The government's goal is to strike a balance between meeting domestic demand and maintaining a stable fuel supply, while also considering the interests of exporters and the broader economy.