Centre Hikes Windfall Tax on Petrol Exports to Rs 2.5 per Litre, Cuts Diesel Export Duty to Rs 8.5:

The Central Government has increased the windfall tax on petrol exports from Rs 0.5 per litre to Rs 2.5 per litre. At the same time, it has reduced the tax on diesel exports from Rs 16 per litre to Rs 8.5 per litre for the fortnight starting October 16.

According to a notification issued by the Ministry of Finance, the new tax rates came into effect on Friday. The export duty on aviation turbine fuel (ATF), used in aircraft, remains unchanged at Rs 10.5 per litre.

The government clarified that these changes apply only to fuel exports. The taxes on petrol and diesel sold for domestic use remain unchanged.

The government introduced export duties on diesel and ATF on March 27 amid rising tensions in West Asia. It later introduced a tax on petrol exports from May 16. These tax rates are reviewed every two weeks based on market conditions.

The main aim of the windfall tax is to ensure enough petroleum products are available in the domestic market and prevent exporters from making excessive profits by taking advantage of differences between domestic and international prices.

The latest changes come at a time when global energy markets continue to face uncertainty due to the ongoing conflict in West Asia and fluctuations in crude oil prices.