The government on Tuesday revised the windfall gains tax on fuel exports for the fortnight beginning July 1, raising the levy on petrol while reducing duties on diesel and aviation turbine fuel (ATF).
According to a Finance Ministry notification, the special additional excise duty (SAED) on petrol exports has been increased to Rs 4 per litre from Rs 1.5 per litre. In contrast, the duty on diesel exports has been cut to Rs 8.5 per litre from Rs 14 per litre, while the levy on ATF exports has been reduced to Rs 7.5 per litre from Rs 12.5 per litre.
The revised rates came into effect on July 1.
The government had imposed export duties on diesel and ATF on March 27 amid escalating tensions in West Asia and has since reviewed the rates every fortnight. An export levy on petrol was introduced from May 16.
The Finance Ministry also expanded exemptions from the export duty regime. Public sector oil companies exporting petrol, diesel and ATF to Nepal, Bhutan, Bangladesh and Sri Lanka were already exempt. The exemption has now been extended to exports to Mauritius and the Maldives as well.
There is no change in the existing excise duty rates on petrol and diesel meant for domestic consumption.
The export levies were introduced to ensure adequate domestic availability of petroleum products and to discourage excessive exports at a time when global crude oil prices had risen sharply due to the conflict in West Asia. The measures were also aimed at preventing exporters from benefiting disproportionately from international price differentials.