Govt raises windfall tax on petrol export to ₹2.5 per litre, cuts diesel levy to ₹8.5

The government has raised the windfall tax on petrol exports, while cutting the levy on diesel exports from October 16, according to a finance ministry notification.

The Special Additional Excise Duty (SAED), along with the road and infrastructure cess, on diesel exports has been slashed to ₹8.5 per litre, from ₹16 per litre.

The duty on petrol exports has been hiked to ₹2.5 per litre from ₹0.5 per litre.

The SAED on aviation turbine fuel (ATF) exports has been retained at ₹10.5 per litre for the next fortnight.

There is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.

The revised rates came into effect from Friday, October 16.

The windfall tax was introduced to improve domestic availability of petroleum products by discouraging exports and preventing exporters from taking undue advantage of higher international prices.

The government imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight depending on international crude oil and refined product prices. amid West Asia conflict.

The levy was imposed on petrol exports from May 16.

In its October 1 review, the government had reduced the levy on diesel exports to ₹16 per litre from ₹20 per litre, while the duty on ATF exports was cut to ₹10.5 per litre from ₹15 per litre.