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Government Adjusts Export Duties: Petrol Windfall Tax Raised, Diesel Levy Cut

There is no change in the existing duty rates on petrol and diesel sold for domestic consumption. The government has raised the windfall tax on petrol exports, while cutting the levy on diesel exports from October 16, according to a finance ministry notification.

The Special Additional Excise Duty (SAED), along with the road and infrastructure cess, on diesel exports has been slashed to ₹8.5 per litre, from ₹16 per litre. The duty on petrol exports has been hiked to ₹2.5 per litre from ₹0.5 per litre, while the SAED on aviation turbine fuel exports remains at ₹10.5 per litre for the next fortnight.

The revised rates came into effect from Friday, October 16. The windfall tax was introduced to improve domestic availability of petroleum products by discouraging exports and preventing exporters from taking undue advantage of higher international prices. This move follows the government's earlier imposition of an export duty on diesel and aviation turbine fuel on March 27, with fortnightly revisions based on international crude oil and refined product prices amid the West Asia conflict.

The levy was imposed on petrol exports from May 16. In its October 1 review, the government had reduced the levy on diesel exports to ₹16 per litre from ₹20 per litre, while the duty on ATF exports was cut to ₹10.5 per litre from ₹15 per litre.