Windfall Tax Hike: Diesel Export Duty Climbs To Rs 24/Litre; Petrol, ATF Follow Suit

The Centre has increased the windfall tax on exports of petrol, diesel and aviation turbine fuel (ATF), raising the levy across all three petroleum products in a move aimed at capturing a larger share of gains from overseas fuel sales.

According to the latest notification, the export duty on petrol has been raised to Rs 3.5 per litre from Rs 2.5 per litre, while the levy on diesel has been increased sharply to Rs 24 per litre from Rs 15.5 per litre. 

The export duty on ATF has also been revised upwards to Rs 22 per litre, compared with the earlier Rs 14.5 per litre.

The revision comes as the government periodically reviews windfall taxes in line with movements in global crude oil prices and refining margins.

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The levy is intended to ensure that a portion of extraordinary profits earned by fuel exporters is shared with the exchequer when international market conditions remain favourable.

Despite the increase in export duties, the government has left excise duty on petrol and diesel sold in the domestic market unchanged, indicating that the latest revision is targeted solely at exports and is not expected to have any direct impact on retail fuel prices for consumers.

Windfall taxes are revised at regular intervals based on changes in global energy markets, including crude prices, product cracks and refining economics. 

The latest increase suggests the government sees sufficient strength in export profitability to warrant a higher levy on outbound shipments.

The revised duties will be applicable from the date specified in the official notification issued by the Centre.

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