- Government increased petrol, lowered diesel export duties October 16.
- Windfall tax on fuel exports began July 2022.
- Duties are reviewed fortnightly, adjusting to global crude prices.
The government has moved the duties on fuel exports in opposite directions, raising the levy on petrol while lowering the one on diesel, with the changes taking effect from Friday, 16 October, according to a Finance Ministry notification, IANS reported.
Petrol Export Duty Raised to Rs 2.5 a Litre
Under the ministry’s order, the export duty on petrol has been increased to Rs 2.5 per litre from Rs 0.5 per litre. The duty on diesel exports, meanwhile, has been brought down to Rs 8.5 per litre from Rs 16 per litre.
Also Read : Dalal Street Cautious After Thursday’s Bumper Rally: Sensex Up 50 Points, Nifty Over 23K
Windfall Tax on Fuel Exports: From July 2022 to Now
The windfall tax on fuel exports is not new. The government first imposed it in July 2022 to capture the super-normal profits that refiners were making after global crude prices surged following the Russia-Ukraine conflict.
It was reintroduced in March 2026, when crude prices jumped during the US-Israeli war on Iran, according to the news agency.
Fortnightly Review Links Fuel Export Duty to Crude
Export duties are not fixed for long. The government reviews them every fortnight and adjusts them in line with movements in international crude oil and petroleum product prices, per the report. The latest revision follows several changes in recent months, made against a backdrop of volatile oil prices and geopolitical tensions.
Diesel, ATF Export Levies Revised Since August
A look at the recent revisions shows how much the rates have shifted from one review to the next.
In August, the government raised the export duty on petrol to Rs 3.5 per litre from Rs 2.5 per litre. The total duty on diesel went up to Rs 25.5 per litre from Rs 15.5 per litre, and the export levy on aviation turbine fuel (ATF) was increased to Rs 22 per litre from Rs 14.5 per litre.
September brought reductions. As part of its fortnightly review, the government reduced the windfall tax and export levies on petrol, diesel and ATF. The duty on petrol exports was cut to Rs 0.5 per litre, made up of Special Additional Excise Duty (SAED) of Rs 0.5 per litre. In the revision effective 1 September, the export levy on diesel was lowered to Rs 1 per litre from Rs 3 per litre, while the windfall tax on diesel exports was cut to Rs 19 per litre from Rs 24 per litre.
Friday’s notification takes petrol back up from that Rs 0.5 level, while bringing the diesel duty down further.
Input By : IANS
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
