New Delhi: Amid persistently high crude oil prices triggered by the continuing conflict in West Asia, the government on Friday introduced a windfall tax of Rs 3 per litre on petrol exports, while lowering export duties on diesel and aviation turbine fuel (ATF). The revised rates will come into effect from May 16. The Ministry of Finance issued a notification in this regard.
“In exercise of the powers conferred by Section 5A of the Central Excise Act, 1944 (1 of 1944) read with Section 147 of Finance Act, 2002 (20 of 2002), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 06/2026-Central Excise,” the notification stated.
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The government imposed a Rs 3 per litre special additional excise duty on the export of petrol. Meanwhile, special additional excise duty on diesel has been cut to Rs 16.5 per litre from Rs 23 per litre. The special additional excise duty on ATF exports has also been cut to Rs 16/ltr from Rs 33/ltr.
The government also said tit will not charge any road and infrastructure cess on exports of petrol and diesel.
Export duties on diesel and aviation turbine fuel (ATF) were first introduced by the government on March 26 at rates of Rs 21.5 per litre and Rs 29.5 per litre, respectively. The duties were then substantially raised on April 11, before the government eased them partially during its April 30 review, reported The Times of India.
Petrol And Diesel Prices Hiked:
Earlier on Friday, petrol and diesel prices were hiked by Rs 3 per litre on Friday morning after state-owned oil firms ended a four-year record hiatus in rate revision. Petrol price was hiked to Rs 97.77 per litre from Rs 94.77 in the national capital. Diesel now costs Rs 90.67 as against Rs 89.67 per litre previously, according to industry sources, ANI reported. The increase has pushed fuel prices above Rs 100 per litre in several cities like Mumbai, Kolkata, and Chennai.
The increase is a 10th of the desired hike needed to account for the surge in global energy rates since the start of the West Asia conflict.
