Government Cuts Windfall Tax on Petrol, Diesel and ATF Exports
The government has reduced export levies on petrol, diesel and ATF from September 16 as global oil prices remain volatile amid Middle East tensions.
The government has reduced the windfall tax on exports of petrol, diesel and aviation turbine fuel (ATF), with the revised rates taking effect from September 16. The changes come as global oil prices remain volatile amid continuing tensions and supply concerns in the Middle East.
The export levy on petrol has been lowered to Rs 0.50 per litre from Rs 1.50, while the total levy on diesel has been cut to Rs 20 per litre from Rs 25. The ATF export duty has also been reduced to Rs 15 per litre from Rs 19. For diesel, the Special Additional Excise Duty has been reduced to Rs 20 per litre, while the Road and Infrastructure Cess has been removed.
The government reviews these petroleum export levies every two weeks based on international crude prices, refined product prices and refinery margins. The latest revision partly reverses the increase announced on September 1.
Global oil markets have remained sensitive to developments in the Middle East, including attacks affecting Saudi oil infrastructure and concerns over disruptions around the Strait of Hormuz. Brent crude was trading around $104.59 a barrel on September 17, while WTI stood near $101.29.
The reduction applies only to petroleum product exports and does not lower domestic petrol or diesel taxes. Therefore, Indian consumers should not expect an immediate reduction in pump prices because of this decision.
India’s large refined petroleum export sector makes the levy changes relevant for refiners, while international crude prices will continue to influence future revisions.
