Centre revises windfall tax, exempts petrol exports and raises diesel levy

• Centre removes the Rs 2.50-per-litre export duty on petrol.

• Diesel export duty rises to Rs 11.50 per litre, while the ATF levy increases to Rs 11 per litre.

• Changes follow a fortnightly review aimed at balancing domestic fuel availability with international market conditions.

The Centre on Saturday removed the export duty on petrol while raising levies on diesel and aviation turbine fuel (ATF), revising the tax burden on overseas fuel shipments amid volatile global energy prices.

Finance Ministry notifications reduced the special additional excise duty on petrol exports to zero from Rs 2.50 per litre.

The duty on diesel exports increased to Rs 11.50 per litre from Rs 8.50 per litre. ATF exports will attract a levy of Rs 11 per litre, compared with Rs 10.50 previously.

The changes form part of the government’s fortnightly review of fuel export duties, which takes account of movements in international crude oil and refined product prices.

The latest decision partly reverses an earlier adjustment in October. At that time, the government had increased the petrol export levy from 50 paise to Rs 2.50 per litre, while cutting the diesel duty from Rs 16 to Rs 8.50 per litre.

Successive revisions reflect the government’s efforts to balance domestic supply needs with the commercial incentives available to refiners in overseas markets.

The export levies were reintroduced in March after tensions in the Middle East drove up global crude prices and disrupted energy supply routes.

The government had said the duties were intended to protect domestic fuel availability by discouraging refiners from directing supplies abroad when overseas sales offered more attractive margins.

Disruptions to shipping through the Strait of Hormuz have added to India’s energy security concerns. The corridor has traditionally carried a significant share of the country’s crude imports, making interruptions a risk to supply arrangements.

The uncertainty has prompted refiners to diversify their sources of crude and keep a closer watch on export commitments.

With IANS inputs