Kathmandu— The Indian government has increased the special additional excise duty (SAED) on diesel, petrol, and aviation turbine fuel (ATF) exports in response to ongoing volatility in global crude oil prices due to tensions in West Asia. The windfall tax on diesel exports was raised from Rs 15.5 per litre to Rs 25.5 per litre, while the export duty on ATF increased to Rs 22 per litre and petrol saw a rise to Rs 3.5 per litre.

Government Measures to Curb Exports

The latest adjustments follow previous revisions in July when the government raised windfall taxes on diesel and ATF exports while reducing levies on petrol. These measures aim to discourage fuel exports, ensuring adequate domestic supply amid rising global oil prices triggered by escalating US-Iran tensions.

Finance Ministry notifications indicate that earlier this year, export duties were set at Rs 23 per litre for diesel and Rs 33 per litre for ATF under SAED, with nil Road and Infrastructure Cess (RIC). The government has now revised these rates to manage domestic fuel availability.

Impact of Global Crude Oil Prices

The decision comes as global crude oil prices remain volatile due to geopolitical tensions in West Asia. Escalating conflicts between the US and Iran have led to improved margins for fuel exporters, prompting the government to take steps to stabilize domestic fuel supplies.

These measures reflect a broader strategy to balance international market dynamics with national energy security needs.

(With inputs from ANI)

Originally published on abcnews.com.np.