Government Increases Special Additional Excise Duty on Crude Petroleum and Diesel

The government of India has raised the Special Additional Excise Duty (SAED) or windfall tax on crude petroleum from Rs 1,600 per tonne to Rs 4,250 per tonne. Additionally, the windfall tax on diesel has been increased to Re.1 per liter from zero. These revisions are set to be effective from August 1, as stated in a gazette notification. However, it was clarified that the windfall tax on petrol will remain at ‘nil’.

Similarly, there will be no change in the SAED on jet fuel or aviation turbine fuel (ATF). The government regularly revises windfall taxes on these commodities on a fortnightly basis. These tax hikes could potentially impact fuel prices, leading to implications for consumers and businesses across the country.