NEW DELHI: The Centre on Tuesday revised the windfall tax on fuel exports, increasing the levy on petrol while reducing duties on diesel and aviation turbine fuel (ATF). The revised rates will come into effect from July 1.According to a finance ministry notification, the special additional excise duty (SAED) on petrol exports has been increased to Rs 4 per litre from the existing Rs 1.5 per litre.At the same time, the export duty on diesel has been cut to Rs 8.5 per litre from Rs 14 per litre, while the levy on ATF exports has been reduced to Rs 7.5 per litre from the current Rs 12.5 per litre.The ministry said the revised duties will remain effective for the fortnight beginning July 1.The government first imposed export duties on diesel and ATF on March 27 amid rising tensions in West Asia and has since reviewed the rates every fortnight. An export levy on petrol was introduced later, with effect from May 16.When the duties were initially imposed, Public Sector Oil Companies were exempted from paying the export levy on petrol, diesel and ATF supplied to Nepal, Bhutan, Bangladesh and Sri Lanka.The Finance Ministry has now expanded that exemption to include exports by Public Sector Oil Companies to Mauritius and the Maldives.It also clarified that there has been no change in the existing excise duty on petrol and diesel meant for domestic consumption.The windfall tax was introduced to ensure adequate domestic availability of petroleum products as the conflict in West Asia pushed up global crude oil prices.The levy was also intended to discourage excessive exports and prevent refiners from benefiting disproportionately from higher international fuel prices during the ongoing regional crisis.
