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Govt Imposes New Rs 3/Litre Export Tax on Petrol, Cuts Diesel and ATF Duties

The Indian government has imposed a new special additional excise duty of Rs 3 per litre on petrol exports, marking the first such levy since the West Asia conflict began. Export duties on diesel and aviation turbine fuel have been significantly reduced to Rs 16.5 per litre and Rs 16 per litre respectively. Domestic fuel tax rates remain unchanged, and the road and infrastructure cess has been reduced to zero on petrol and diesel exports. These revisions come amid ongoing geopolitical tensions between the US and Iran, with US President Donald Trump rejecting Iran's latest proposal.

Key Points: Petrol Export Tax Rs 3/Litre, Diesel & ATF Duties Cut

  • New Rs 3/litre special additional excise duty on petrol exports
  • Diesel export duty cut to Rs 16.5/litre from Rs 23/litre
  • ATF export duty reduced to Rs 16/litre from Rs 33/litre
  • Domestic fuel tax rates remain unchanged
  • Windfall tax framework continues amid West Asia tensions
2 min read

Govt revises petrol export tax, cuts diesel, ATF duties

Govt revises petrol export tax to Rs 3/litre, reduces diesel duty to Rs 16.5/litre and ATF duty to Rs 16/litre. Domestic fuel taxes unchanged.

"I don't like it - TOTALLY UNACCEPTABLE. - Donald Trump"

New Delhi, May 16

The government has revised export taxes on petroleum products, imposing a special additional excise duty of Rs 3 per litre on petrol exports while reducing the duty on diesel to Rs 16.5 per litre, effective from Saturday.

The notification by the Ministry of Finance stated that the entry of Rs 3 per litre shall be substituted for petrol exports, while diesel has been revised to Rs 16.5 per litre.

It further said the road and infrastructure cess has been reduced to zero on petrol and diesel exports.

Domestic fuel tax rates remain unchanged, according to the government.

The fresh SAED levy on petrol exports marks the first such duty since the outbreak of the West Asia conflict.

While export duties on diesel and ATF have been reduced from higher levels after a series of revisions in recent months.

Earlier, export duty on diesel was revised multiple times. It was first set at Rs 21.50 per litre on March 26, then raised to Rs 55.5 per litre on April 11. Later, it was cut to Rs 23 per litre on April 30, and has now been further reduced to Rs 16.5 per litre.

Similarly, aviation turbine fuel (ATF) followed a similar pattern. The duty was first Rs 29.5 per litre, then increased to Rs 42 per litre. It was later reduced to Rs 33 per litre and has now been brought down to Rs 16 per litre.

The windfall tax framework was introduced to ensure adequate domestic fuel availability and curb exports amid volatile global oil markets triggered by the West Asia crisis.

Geopolitical tensions remain elevated after the United States and Iran failed to reach a peace agreement, with US President Donald Trump rejecting Iran's proposal, saying: "I don't like it - TOTALLY UNACCEPTABLE."

- IANS

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Reader Comments

S
Sarah B
Interesting move by India. As someone working in aviation, the ATF duty cut from Rs 42 to Rs 16 per litre is significant. Hopefully this translates to cheaper airfares for passengers. But with global tensions still high, I wonder how long these reduced rates will last.
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Raghav A
This constant back-and-forth with export duties shows the government is struggling to balance domestic supply and global market pressures. One month they hike diesel duty to Rs 55, next month cut to Rs 16.50. Where's the long-term policy? Just reacting to every geopolitical tremor. 😑
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Emma D
Reading between the lines - India is strategically managing its energy security. The new Rs 3 petrol export tax while reducing diesel/ATF duties suggests they want to ensure enough petrol for domestic use while encouraging diesel exports that earn foreign exchange. Smart balancing act!
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Shreya B
Good to see ATF duty coming down - airlines were struggling. But I'm still waiting for petrol price drop at my local pump. Government collects over Rs 20 per litre in taxes on petrol. Aap bolte hain reforms hote hain, but common aadmi ko kya milta hai? 🙄
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James A
The West Asia conflict continues to dictate our energy policy. Trump rejecting Iran's proposal shows this volatility won't end soon. India needs to diversify crude sources and invest more in renewables. These windfall tax adjustments are just patchwork solutions.

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