The government has increased windfall taxes on diesel and aviation turbine fuel exports due to rising crude oil prices linked to the Middle East crisis between the US and Iran. Diesel export duty is now Rs 15.5 per litre, and the tax on aviation turbine fuel has increased to Rs 14.5 per litre from Rs 7.5 per litre. According to Reuters, export duties on diesel and aviation turbine fuel have increased significantly due to a surge in crude oil prices following renewed hostilities between the United States and Iran.
The duty on diesel exports has been raised to Rs 15.5 per litre from Rs 8.5 per litre, while the duty on aviation turbine fuel has increased to Rs 14.5 per litre from Rs 7.5 per litre. In contrast, the export duty on petrol has been reduced from Rs 4 per litre to Rs 2.5 per litre. This shift in duties coincided with US President Donald Trump’s decision to reimpose a naval blockade on Iranian ports and Iran’s retaliatory strikes on US infrastructure in the region.
