Centre Raises Excise Duty on Fuel Exports

The Central Government has revised the special additional excise duty on the export of petrol, diesel and aviation turbine fuel (ATF). As part of the latest revision, the export duty on diesel has been increased from Rs. 15.50 per litre to Rs. 24 per litre, while the export duty on petrol has been raised from Rs. 2.50 per litre to Rs. 3.50 per litre. The revised rates are intended to tax the additional profits earned by refiners through fuel exports.

The windfall tax mechanism is designed to capture extraordinary gains made by oil companies during periods of high international fuel prices. With this revision, refineries exporting petroleum products will be required to pay the higher special additional excise duty, strengthening the government's revenue collection from fuel exports.