The government has reduced the windfall gains tax on the export of petroleum products, bringing relief to oil companies. The revised rates will come into effect from June 1, according to a notification issued by the finance ministry. Under the new structure, the special additional excise duty (SAED) on petrol exports has been cut to Rs 1.5 per litre. The tax on diesel exports has been reduced to Rs 13.5 per litre, while aviation turbine fuel (ATF) will now attract Rs 9.5 per litre.
No change in domestic fuel prices
The government clarified that there will be no change in excise duty rates on petrol and diesel sold in the domestic market. The revisions only apply to exports of these fuels. In another key decision, the road and infrastructure cess on the export of petrol and diesel has been reduced to zero, further easing the export tax burden on oil companies.
Part of periodic tax review system
The windfall tax was first introduced to manage fuel availability in the domestic market and prevent exporters from taking advantage of global price differences. The government regularly reviews these rates based on international crude oil movements.
The tax structure has seen multiple revisions in recent months, with rates being adjusted up and down in line with global crude oil prices and geopolitical developments affecting supply. The latest reduction comes amid stabilising conditions in global oil markets after earlier volatility driven by geopolitical tensions.
