The government has cut the windfall tax on diesel, petrol and aviation turbine fuel exports, effective from Saturday. Diesel export duty has been lowered to Rs 24 a litre from Rs 25.5, while the petrol levy has been scrapped entirely. The tax on ATF exports has been reduced to Rs 19.5 a litre.
The reduction comes as global crude oil prices have declined, narrowing the windfall margins that the tax was designed to capture. The windfall tax was first introduced in July 2022 after private refiners benefited from high global margins by exporting fuel rather than selling domestically. The rates are reviewed every fortnight based on international price movements.
