Home / News / India /  Jet fuel price slashed in Delhi after govt hikes windfall profit tax

The price of ATF (aviation turbine fuel) saw a price cut on Thursday after the Central government raised the windfall profit tax on jet fuel exports.

The price of jet fuel has been cut by 0.7% ( 874) to 1.21 lk/kl from 1.22/kl in Delhi.

The Centre has hiked the windfall profit tax on ATF to 9 a litre. The tax on Aviation Turbine Fuel exports has been hiked from 2 per litre with effect from September 1.

India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies. But international oil prices have cooled since then, eroding the profit margins of both oil producers and refiners.

On July 1, export duties of 6 per litre ($12 per barrel) were levied on petrol ATF.

Thereafter, on July 20, the tax on the export of ATF was cut by 4. On August 2, the export tax on ATF was scrapped, following a drop in refinery cracks or margins.

On August 19, the export tax of 2 per litre on ATF was brought back.

At the fourth fortnightly review on August 31, the taxes on ATF export has been raised again.

Besides, the government has hiked the windfall profit tax on the export of diesel to 13.5 per litre and has also raised the levy on domestically-produced crude oil in line with the hardening of global prices.

At the fourth fortnightly review, the government raised the windfall profit tax on the export of diesel to 13.5 per litre from 7 per litre, according to a finance ministry notification issued late Wednesday night.

Alongside, the tax on domestically-produced crude oil has also been hiked to 13,300 per tonne from 13,000.

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