India Implements New Windfall Tax on Petrol Exports Amid High Crude Prices

Government Introduces Windfall Tax on Petrol Exports

New Delhi: In response to the ongoing conflict in West Asia and the resulting high crude oil prices, the Indian government announced a new windfall tax of Rs 3 per litre on petrol exports on Friday. This measure will be effective starting May 16. The Ministry of Finance released a notification detailing these changes.

The notification stated, "In exercise of the powers conferred by Section 5A of the Central Excise Act, 1944 (1 of 1944) read with Section 147 of Finance Act, 2002 (20 of 2002), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 06/2026-Central Excise."

Alongside the new tax on petrol, the government has reduced the special additional excise duty on diesel exports from Rs 23 per litre to Rs 16.5 per litre. Similarly, the duty on aviation turbine fuel (ATF) exports has been decreased from Rs 33 per litre to Rs 16 per litre. Additionally, the government confirmed that no road and infrastructure cess will be applied to petrol and diesel exports.