New Delhi: The Centre on Friday revised its windfall taxation structure on fuel exports by imposing a fresh export duty on petrol while reducing existing levies on diesel and aviation turbine fuel amid continuing volatility in global crude oil prices.
According to a notification issued by the Finance Ministry, a special additional excise duty of Rs 3 per litre has now been imposed on petrol exports. This marks the first such levy on petrol exports since tensions escalated in West Asia earlier this year.
At the same time, the government reduced the export duty on diesel from Rs 23 per litre to Rs 16.5 per litre. The levy on aviation turbine fuel was also lowered from Rs 33 per litre to Rs 16 per litre. The revised rates will come into effect from May 16.
The ministry clarified that the road and infrastructure cess on exports of petrol and diesel would remain nil. It also stated that there would be no changes in the duty structure for petrol and diesel meant for domestic consumption, ensuring that retail fuel supplies within the country remain unaffected for now.
India first introduced the windfall tax regime on fuel exports in March following the sharp rise in crude oil prices triggered by the escalating conflict involving the United States, Israel and Iran. The government had initially imposed export duties on diesel and aviation fuel to discourage excessive overseas shipments and maintain adequate domestic fuel availability.
The tax rates have undergone multiple revisions in recent months in response to fluctuations in global energy markets. Export duties on diesel and aviation fuel were sharply increased during April as crude oil prices surged above the USD 100 per barrel mark before being gradually reduced in subsequent reviews.
Officials said the revised structure aims to balance domestic fuel security with changing international price trends. The move is also intended to prevent exporters from taking disproportionate advantage of global price differences while ensuring sufficient supplies remain available within India during the continuing geopolitical uncertainty in West Asia.
