The Centre has once again revised the windfall tax on fuel exports, raising duties on petrol, diesel and aviation turbine fuel (ATF) for the next fortnight while keeping domestic fuel duties unchanged.According to a finance ministry notification, the revised special additional excise duty (SAED) will come into force from August 3.The SAED on diesel exports has been increased to Rs 25.5 per litre from Rs 15.5 per litre. The levy on ATF exports has been raised to Rs 22 per litre from Rs 14.5 per litre, while the duty on petrol exports has gone up to Rs 3.5 per litre from Rs 2.5 per litre, the rate notified on July 16.There is, however, no change in the duty rates on petrol and diesel cleared for domestic consumption.The export duty on diesel and ATF was first imposed on March 27 as tensions in the Middle East escalated. Since then, the government has been reviewing and revising the rates every fortnight. Petrol exports were brought under the levy from May 16.The windfall tax was introduced to ensure that adequate quantities of petroleum products remain available within the country during the Middle East crisis. It was also intended to prevent exporters from benefiting from the price gap created after global crude oil prices climbed following the outbreak of the conflict.The latest revision in export duties follows a reduction in commercial Liquefied Petroleum Gas (LPG) prices that came into effect from August 1.For the second consecutive month, the price of a 19-kg commercial LPG cylinder was lowered, offering relief to restaurants, hotels, caterers and other commercial users dependent on LPG for their daily operations.The price was cut by Rs 202 per cylinder in Delhi and Rs 209 in Kolkata. After the revision, a 19-kg commercial LPG cylinder is priced at Rs 2,728 in Delhi and Rs 2,872.50 in Kolkata.Last week, Prime Minister Narendra Modi chaired an extended meeting of the Cabinet Committee on Security (CCS) with senior ministers to assess the impact of conflicts around the Strait of Hormuz, the Black Sea, the Red Sea and the Gulf of Aden on India’s imports and supply chains.The meeting was attended by defence minister Rajnath Singh, home minister Amit Shah, external affairs minister S Jaishankar and finance minister Nirmala Sitharaman, along with special invitees chemicals and fertilisers minister JP Nadda, commerce minister Piyush Goyal, shipping minister Sarbananda Sonowal and petroleum minister Hardeep Puri.According to official sources, the discussions covered the security implications of the ongoing global conflicts and the disruptions they have caused to supply chains that pass through these regions.
