New Delhi: The Union government has announced a windfall tax of Rs 3 per litre on petrol exports, citing the need to ensure there is no shortage of fuel in the domestic market.
At the same time, the government has reduced the export duty on diesel to Rs 16.50 per litre and on aviation turbine fuel (ATF) to Rs 16 per litre. The revised rates came into effect from yesterday.
In its notification, the Finance Ministry said the road and infrastructure cess on petrol and diesel exports has been fully withdrawn. It also clarified that there is no change in the existing tax rates on petrol and diesel sold for domestic consumption.
This is the first time a special additional excise duty of Rs 3 per litre has been imposed on petrol exports. Until now, petrol exports did not attract an additional levy, while the diesel export duty has been cut from Rs 23 per litre and the ATF levy from Rs 33 per litre.
A windfall tax is typically imposed on extraordinary profits earned due to external factors—such as war, global shortages or natural disasters—rather than a company’s own investment or effort. The government’s move comes amid a sharp rise in global crude prices linked to war-related disruptions.
