India has further raised a windfall tax on exports of diesel and aviation turbine fuel it imposed last month to ensure adequate domestic supply.
In a recent government notification, India’s finance ministry increased the tax on diesel exports to 55.5 rupees per liter from 21.5 rupees per liter, and on exports of aviation turbine fuel to 42 rupees per liter from 29.5 rupees per liter, effective immediately.
India also last month cut excise duty on petrol and diesel by 10 rupees ($0.11).
Separately, to control a rise in airfares, it has also capped a monthly increase in aviation turbine fuel prices for domestic airlines at 25 percent in April. Jet fuel accounts for up to 40 percent of an airline’s expenses.
Global oil prices have surged past $100 per barrel as the flow of oil through the Strait of Hormuz, which serves as a conduit for 40 percent of India’s crude oil imports, remains heavily restricted due to the US-Iran war.
