Petrol and Diesel Export Duty Raised Again as Centre Revises Windfall Tax
The central government has increased windfall taxes on petrol diesel and aviation fuel exports with revised rates taking effect immediately while domestic fuel prices remain unchanged across India.
Petrol and Diesel Export Duties Revised
The central government has once again revised the windfall tax on petroleum exports, increasing the export duty on petrol, diesel, and aviation turbine fuel. The latest notification came into effect from August 3 as part of the government’s routine review of export taxes, which is conducted every fifteen days based on global market conditions.
The revised tax structure comes at a time when international crude oil prices have softened due to easing tensions in West Asia. Despite the decline in crude prices, the government decided to increase the export levy, making the move a major point of discussion across the energy sector.
New Export Duty Rates
Under the revised rates, the export duty on diesel has been raised from Rs 15.50 per litre to Rs 24 per litre. The export duty on petrol has also increased from Rs 2.50 per litre to Rs 3.50 per litre. In addition, refiners exporting petroleum products overseas will continue to be subject to a special additional excise duty linked to the extra profits earned from exports. Export duties on aviation turbine fuel have also been revised under the latest order.
The government reviews these taxes every two weeks, considering factors such as international crude oil prices, export margins, global demand, and changing market conditions. Following a similar revision last month, this marks another increase in export duties.
No Impact on Domestic Fuel Prices
The revised windfall tax will mainly affect companies exporting fuel from India and is not expected to influence petrol or diesel prices for domestic consumers. Retail fuel prices across the country remain unchanged despite the latest policy decision.
Oil marketing companies continue to update fuel prices every day at 6 am. On Monday, no changes were announced in retail rates. Petrol and diesel prices in major cities, including Hyderabad and Visakhapatnam, remained stable, offering relief to consumers even as export taxes moved higher.
