The Centre has revised export duties on petroleum products, bringing back a levy on petrol exports while lowering taxes on diesel and aviation turbine fuel.
A petrol pump attendant fills fuel in a vehicle at a petrol pump after oil marketing companies hiked petrol and diesel prices. (Photo: IANS)
The Centre has imposed a fresh export tax on petrol while lowering duties on diesel and aviation turbine fuel (ATF), in a move that comes amid continued volatility in global crude markets triggered by tensions in West Asia.
According to a notification issued by the Ministry of Finance on Friday, a special additional excise duty (SAED) of Rs 3 per litre will now apply on petrol exports from Saturday. At the same time, export duty on diesel has been reduced to Rs 16.5 per litre, while ATF duty has been brought down to Rs 16 per litre.
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The revision signals a calibrated shift in the government’s fuel export policy at a time when geopolitical uncertainty continues to impact global energy prices and supply chains. Domestic fuel taxes, however, remain unchanged.
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The government has also removed the road and infrastructure cess on petrol and diesel exports.
The latest move marks the return of export duty on petrol for the first time since the outbreak of the West Asia conflict. In contrast, levies on diesel and ATF have seen multiple downward revisions over the past few weeks after sharp increases earlier.
Export duty on diesel has gone through several revisions since March. The levy was fixed at Rs 21.50 per litre on March 26 before being sharply increased to Rs 55.5 per litre on April 11. It was later reduced to Rs 23 per litre on April 30 and has now been cut further to Rs 16.5 per litre.
ATF duties followed a similar trajectory. The tax was initially fixed at Rs 29.5 per litre, later increased to Rs 42 per litre, before being reduced to Rs 33 per litre. The latest revision has now lowered it to Rs 16 per litre.
The windfall tax framework was introduced by the Centre to maintain adequate domestic fuel availability and discourage excessive exports during periods of sharp global price swings.
Oil markets have remained under pressure amid the continuing West Asia crisis and stalled diplomatic efforts between the United States and Iran.
US President Donald Trump recently rejected Iran’s proposal during peace discussions, saying, “I don’t like it — TOTALLY UNACCEPTABLE.”
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