Centre cuts windfall tax on diesel and ATF exports from Oct 1

Mumbai: The Centre has reduced export levies on diesel and aviation turbine fuel (ATF) for the second straight fortnight, offering some relief to refiners exporting petroleum products from India.The export levy on diesel has been cut to Rs 16 per litre from Rs 20 per litre. For ATF, the levy has been lowered to Rs 10.50 per litre from Rs 15 per litre. The new rates came into effect from October 1.The export levy on petrol remains unchanged at Rs 0.50 per litre.What Do The Lower Rates Mean?The latest reduction lowers the tax burden on refiners when they export diesel and ATF. This could improve the returns they earn from selling these fuels in overseas markets.However, exporters will still have to pay a sizeable levy. The government has not removed the duties completely as it continues to balance export opportunities with the need to maintain adequate fuel supplies in India.Since September 1, the diesel export levy has fallen by Rs 9 per litre, while the levy on ATF has dropped by Rs 8.50 per litre.Second Cut In A FortnightThe government had last revised the rates from September 16, cutting the diesel export levy to Rs 20 per litre and the ATF levy to Rs 15 per litre. ATF Prices Rise ₹16 Per Litre To ₹137, Marking Third Straight Monthly HikeThe Finance Ministry notified the latest reduction on September 30.Why Were Export Levies Introduced?The Centre introduced export levies on petroleum products from March 27, 2026, amid the West Asia crisis. The move was aimed at discouraging excessive exports and ensuring sufficient fuel availability in the domestic market. Windfall Tax Cut: Government Slashes Petrol, Diesel And ATF Export Duty From September 16 Amid West Asia TensionsThe rates are reviewed every fortnight based on movements in average international prices of crude oil and petroleum products.Domestic Fuel Taxes UnchangedThe latest changes apply only to fuel exports. They do not change the existing excise duties on petrol and diesel sold in the domestic market.This means the export tax reduction by itself does not translate into a cut in petrol or diesel prices for consumers in India.

Diesel levy reduced to ₹16/L from ₹20; ATF to ₹10.5/L from ₹15; petrol levy unchanged at ₹0.50/L

The revised levies will apply for a fortnight, with the finance ministry also retaining existing duties on fuel cleared for domestic consumption

The Centre cut the windfall tax on exports of diesel and aviation turbine fuel (ATF) from October 1, according to a notification issued by the Finance Ministry on Wednesday.The duty on diesel exports was reduced to Rs 16 per litre from Rs 20 per litre, while the levy on ATF exports was cut to Rs 10.5 per litre from Rs 15 per litre. The revised rates applied for the next fortnight.The windfall tax on petrol exports remained unchanged at Rs 0.5 per litre.The government had last revised the export levies on September 16, when the diesel duty was reduced to Rs 20 per litre from Rs 25 per litre and the ATF levy to Rs 15 per litre from Rs 19 per litre.The export duties were reviewed every fortnight based on international crude oil and petroleum product prices.There was no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption, reflecting that the latest revision applied to exports and did not directly alter the excise duty on fuel sold in India.