New Delhi, in a major relief for domestic oil refiners, the Indian government has announced a cut in the windfall gains tax on the export of petrol, diesel, and Aviation Turbine Fuel (ATF). The new rates came into effect on August 15, following a latest review by the Finance Ministry.
Under the revised tax structure, the duty on petrol exports has been brought down to zero (nil) per litre from the previous rate of ₹3.5 per litre. The export duty on diesel has been reduced to ₹24 per litre, down from ₹25.5 per litre. Additionally, the special tax on ATF exports has been slashed from ₹22 per litre to ₹19.5 per litre.
A windfall tax is an extra tax collected by the government when companies make unusually high profits due to sharp increases in global oil prices. India adjusts these tax rates every two weeks depending on international market trends.
This decision will directly benefit private and public sector oil companies that export fuel to foreign markets. However, the government clarified that the tax cut is meant only for fuel exports. There is no change in domestic taxes, meaning petrol and diesel prices at local petrol pumps for regular consumers will remain completely unaffected by this announcement.
