Business · India Bureau
India slashes windfall tax on petroleum product exports
The government has reduced export levies on diesel, petrol and aviation turbine fuel, marking the latest adjustment to its windfall tax regime. The move aims to boost competitiveness in global energy markets.
LSN India ·
India has cut the windfall tax on diesel exports to ₹20 per litre from ₹25 per litre, while the levy on petrol shipments has been reduced to ₹0.5 per litre from ₹1.5 per litre, according to official notification.
The reduction represents a significant easing of the tax burden on petroleum exporters as crude oil prices moderate from earlier peaks. The windfall tax, introduced in July 2022, was designed to capture excess profits during periods of elevated global energy prices.
Aviation turbine fuel (ATF) exports have also been subject to similar adjustments as part of the government's broader policy to recalibrate export duties across petroleum products. The changes come as Indian refiners seek to maintain competitiveness in international markets amid fluctuating crude oil valuations.
The government periodically reviews windfall tax rates based on global crude oil price movements. These adjustments typically occur on a fortnightly basis, with rates modified upwards or downwards depending on prevailing market conditions. The latest cuts signal the ministry's response to moderating international energy prices and domestic refining margins.