Govt Cuts Windfall Tax On Diesel, ATF Exports From 1 October
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The government has cut the windfall tax on diesel and ATF exports from 1 October, while keeping the petrol export duty unchanged at ₹0.5 per litre. The diesel levy is now ₹16 per litre and the ATF duty ₹10.5 per litre.
The government has reduced the windfall tax on exports of diesel and aviation turbine fuel (ATF) for the fortnight starting 1 October, while leaving the levy on petrol exports unchanged.
The special additional excise duty (SAED), along with the road and infrastructure cess on diesel exports, has been cut to ₹16 per litre from ₹20 per litre. For ATF, the levy has been reduced to ₹10.5 per litre from ₹15 per litre.
The Finance Ministry announced the revised rates in a notification, with the changes taking effect from 1 October.
Diesel And ATF Export Duties Cut
The latest revision reduces the effective export levy on both diesel and ATF. The diesel duty has been lowered by ₹4 per litre, while the levy on ATF has been reduced by ₹4.5 per litre.
There is no change in the duty applicable to petrol exports, which continues at ₹0.5 per litre for the next fortnight. The government reviews these duties every two weeks, allowing the rates to be adjusted as global oil prices and market conditions change.
Windfall Tax Introduced Amid West Asia Conflict
The government first imposed the export duty on diesel and ATF on 27 March as tensions in West Asia pushed global crude oil prices higher. The government later revised the levy at fortnightly intervals. A similar duty was introduced on petrol exports from 16 May.
The measure was aimed at ensuring adequate availability of petroleum products in the domestic market. It also sought to limit the incentive for refiners to send more fuel overseas when international prices were significantly higher.
The government has continued to review the levy as conditions in the global oil market have changed.
No Change In Domestic Fuel Duties
The latest notification does not change the existing duty rates on petrol and diesel sold in the domestic market.
The revised rates apply to exports of the specified petroleum products from 1 October. The lower levy on diesel and ATF exports comes as the government continues to monitor fuel supplies and crude oil prices amid the ongoing tensions in West Asia.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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