Government Cuts Windfall Tax on Petrol, Diesel and ATF Exports

Government Cuts Windfall Tax on Petrol, Diesel and ATF Exports

The government has reduced windfall tax rates on exports of petrol, diesel and aviation turbine fuel (ATF), with the revised levies taking effect from September 16. The changes come as global oil prices remain volatile amid disruptions and tensions in the Middle East.

The export levy on petrol has been lowered to Rs 0.50 per litre from Rs 1.50, while the combined levy on diesel has been reduced to Rs 20 from Rs 25 per litre. The ATF export duty has also been cut to Rs 15 per litre from Rs 19.

For diesel, the earlier Rs 25 levy included Rs 24 in Special Additional Excise Duty and Rs 1 in Road and Infrastructure Cess. Under the revised structure, SAED stands at Rs 20 per litre while the infrastructure cess has been removed.

The government reviews petroleum export levies every two weeks, allowing rates to be adjusted according to international crude prices, refined-product prices and refinery margins. The latest decision partly reverses the increase announced on September 1.

The levies on petroleum product exports were introduced in March 2026 amid the West Asia crisis to discourage excessive exports and support domestic availability.

The reduction applies only to exports and does not change domestic petrol or diesel taxes. Therefore, the latest move does not directly reduce fuel prices at Indian petrol pumps.

India’s refiners remain exposed to international oil-price movements because the country is a major exporter of refined petroleum products. Continued Middle East disruptions could influence refinery margins, India’s import bill and future fortnightly changes to export levies.

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Published: 6h ago

cricket blog team

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