New Delhi: The Central Government has revised the windfall tax on petrol and diesel exports for the fortnight beginning October 16.
According to a Finance Ministry notification, the government hiked the Special Additional Excise Duty (SAED) on petrol exports while significantly reducing the levy on diesel shipments. The fortnightly adjustment aims to ensure adequate domestic fuel supplies amidst ongoing West Asia geopolitical tensions.
[Petrol Export Duty: Hiked to ₹2.5/Litre] ──▶ Replaces ──▶ [Old Rate: ₹0.5/Litre]
│
[Diesel Export Duty: Cut to ₹8.5/Litre] ◀──( Replaces Old Rate: ₹16/Litre )─┘
Special Additional Excise Duty Rates Adjusted Across Fuels
Significantly, the Finance Ministry raised the export duty on petrol to ₹2.5 per litre, up from ₹0.5 per litre in the previous fortnight.
Conversely, the government reduced the combined SAED and road infrastructure cess on diesel exports to ₹8.5 per litre, down from ₹16 per litre. Meanwhile, the export duty on Aviation Turbine Fuel (ATF) remained unchanged at ₹10.5 per litre.
Key Duty Rate Revisions (Effective October 16):
Petrol Export Levy: Hiked from ₹0.5 to ₹2.5 per litre.
Diesel Export Levy: Cut from ₹16 to ₹8.5 per litre.
ATF Export Levy: Retained at ₹10.5 per litre.
Domestic Clearance Rates: Kept unchanged for retail consumers.
Protecting Domestic Fuel Availability
Crucially, the ministry clarified that duty rates for petrol and diesel cleared for domestic retail consumption remain completely unchanged.
[FORTNIGHTLY FUEL EXPORT DUTY STRUCTURE]
┌────────────────────────────────┼────────────────────────────────┐
▼ ▼ ▼
[Petrol Export SAED] [Diesel Export SAED] [Aviation Turbine Fuel]
Hiked to ₹2.5 per litre Reduced to ₹8.5 per litre Maintained at ₹10.5 per litre
The government originally introduced export duties on diesel and ATF in March to curb private refiners from diverting supplies overseas. Subsequently, authorities extended the levy framework to petrol exports in May to safeguard domestic inventory levels during global energy market volatility.
Fortnightly Energy Levy Revisions
| Fuel Category | Previous Fortnight Duty | Revised Duty (From Oct 16) | Net Adjustment | Primary Strategic Objective |
| Petrol Exports | ₹0.50 Per Litre | ₹2.50 Per Litre | +₹2.00 Hike | Curbs outward petrol supply diversion. |
| Diesel Exports | ₹16.00 Per Litre | ₹8.50 Per Litre | -₹7.50 Cut | Calibrates refiner export margins. |
| Aviation Turbine Fuel | ₹10.50 Per Litre | ₹10.50 Per Litre | No Change | Maintains stable jet fuel taxation. |
| Domestic Consumption | Existing Retail Tax | Unchanged Rates | No Change | Shields domestic retail buyers. |
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