Oil companies suffer a setback, airlines rejoice! Windfall tax on petrol exports hiked
The export levy on diesel has been increased from Rs 24 per litre to Rs 25 per litre in the last fortnightly review, while the duty on ATF exports has been reduced from Rs 19.5 to Rs 19.
RJ Kesari News Desk: The government has increased the windfall tax on petrol exports from zero to ₹1.5 per liter, effective September 1st. Additionally, the levy on diesel exports has been increased and the duty on aviation turbine fuel (ATF) has been slightly reduced.
The levy on diesel exports has been increased from ₹24 per liter in the last fortnightly review to ₹25 per liter, while the duty on ATF exports has been reduced from ₹19.5 per liter to ₹19 per liter.
The ₹1.5 per liter levy on petrol exports will be levied entirely as Special Additional Excise Duty (SAED). In the case of diesel, the SAED will be ₹24 per liter, and the remaining ₹1 will be levied as Road and Infrastructure Cess (RIC). The ₹19 per liter levy on ATF exports will be levied entirely as SAED.
Tax was reduced to zero on August 15
These changes were made as part of the latest fortnightly review of export levies on petroleum products. These levies were implemented from March 27, 2026, to ensure adequate domestic availability by discouraging exports amid the West Asia crisis.
These levies were last revised on August 15, when the government reduced export duty on petrol to zero, fixed the levy on diesel at ₹24 per liter, and the duty on ATF at ₹19.5 per liter.
The rates are revised fortnightly based on the average international prices of crude oil, petrol, diesel, and ATF in the period since the last review.
There is a change every 15 days
The new review has withdrawn the relief given to petrol exporters last fortnight and increased the levy on diesel exports by Rs 1 per liter, while reducing the levy on ATF exports by 50 paise per liter.
The government stated that there has been no change in the existing excise duty rates on petrol and diesel issued for domestic consumption.
Therefore, the revised rates will apply only to exports and will not impact the central excise duty applicable on petrol and diesel sold in the domestic market.
The fortnightly review system allows the government to adjust the export levy in response to changes in international crude oil and petroleum product prices, while also maintaining the ability to discourage exports when domestic fuel availability is a concern.