Delhi/Hyderabad, May 31 (Maxim News): The Central government has reduced the windfall tax on exports of key petroleum products, providing relief to oil refining and exporting companies. The revised rates will come into effect from June 1, according to a notification issued by the Finance Ministry.
The government lowered the Special Additional Excise Duty (SAED) on petroleum product exports by Rs 1.50 per litre as part of its latest review of windfall taxes.
Revised Export Duty Rates
Under the revised structure, the export duty on diesel has been fixed at Rs 13.50 per litre, while the duty on Aviation Turbine Fuel (ATF) exports has been set at Rs 9.50 per litre.
The reduction is expected to provide some relief to domestic refiners and exporters who have been impacted by fluctuating global crude oil prices and changing international market conditions.
Relief for Oil Companies
The windfall tax, officially known as the Special Additional Excise Duty, is imposed on petroleum products to capture extraordinary gains earned by energy companies during periods of high global oil prices.
By reducing the levy, the Centre aims to balance government revenue considerations with the operational needs of oil companies and exporters.
Periodic Review Mechanism
The Union government regularly reviews windfall taxes on crude oil and petroleum product exports based on international crude prices, refining margins, and market conditions.
Industry observers believe the latest reduction could improve export competitiveness for Indian refiners and provide additional flexibility amid volatility in global energy markets.
The revised rates will be applicable from June 1, as per the Finance Ministry notification.
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