The government has imposed a windfall tax on petrol exports and reduced the duty on diesel and aviation turbine fuel (ATF), according to a government notification.
The windfall gains tax on petrol exports has been set at Rs 3 per litre.
At the same time, the government reduced the levy on diesel exports to Rs 16.5 per litre from Rs 23 per litre earlier.
The duty on aviation turbine fuel (ATF) exports has also been cut to Rs 16 per litre from Rs 33 per litre.
The revised rates came into effect immediately.
The government reviews windfall taxes every fortnight based on changes in global crude oil prices, refining margins, and fuel market conditions.
Windfall taxes are imposed when oil companies earn unusually high profits due to sharp increases in global energy prices.
India first introduced windfall taxes in July 2022 after global crude oil prices surged following the Russia-Ukraine conflict.
The taxes mainly apply to exports of petrol, diesel, and aviation fuel produced by domestic refiners.
The latest revision comes amid continued volatility in global oil markets due to geopolitical tensions in West Asia and concerns over supply disruptions.
Crude oil prices have remained elevated after the conflict involving Iran disrupted energy supply routes in the Gulf region.
Higher global oil prices have improved refining margins for Indian fuel exporters, leading the government to adjust windfall taxes accordingly.
The reduction in diesel and ATF duties is expected to provide some relief to refiners and exporters operating in these segments.
India is one of Asia’s major fuel exporters, with companies such as Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Reliance Industries exporting refined petroleum products to global markets.
