Windfall Tax Reset | Hyderabad, Oct. 31: The Central government has withdrawn the special additional excise duty on petrol exports while increasing export levies on diesel and aviation turbine fuel (ATF), according to notifications issued by the Finance Ministry on Saturday.
Under the revised rates, petrol exports will no longer attract an export duty, compared with the earlier levy of Rs. 2.50 per litre.
However, the duty on diesel exports has been increased from Rs. 8.50 to Rs. 11.50 per litre. The export levy on ATF has also been raised from Rs. 10.50 to Rs. 11 per litre.
Windfall Tax on Fuel Exports Revised
The revised rates follow the government’s fortnightly review of fuel export duties, which considers changes in international crude oil and refined petroleum product prices.
The latest decision reverses part of the October revision. At that time, the government increased the petrol export levy from Rs. 0.50 to Rs. 2.50 per litre while reducing the diesel duty from Rs. 16 to Rs. 8.50 per litre.
Fuel export duties have undergone several changes in recent months as the government seeks to balance domestic fuel availability with changing global market conditions.
The export levies were reintroduced in March this year following geopolitical tensions in the Middle East, which pushed up global crude oil prices and disrupted established energy supply routes.
The government had stated that the measures were intended to ensure adequate domestic fuel supplies. The duties discourage refiners from diverting fuel to overseas markets when international export margins are more attractive.
India’s energy security concerns have also increased following disruptions to shipping through the Strait of Hormuz, a key route for crude oil imports. The uncertainty prompted refiners to diversify their sourcing arrangements and review export commitments.
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