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The government on Friday imposed a windfall gains tax of Rs 3 per litre on petrol exports while reducing export levies on diesel and aviation turbine fuel (ATF), as crude oil prices remained elevated amid the ongoing West Asia conflict, PTI reported.The revised rates will come into effect from May 16.According to finance ministry notifications, the special additional excise duty (SAED) on petrol exports has been imposed at Rs 3 per litre for the first time since the start of the West Asia crisis.At the same time, the levy on diesel exports has been reduced to Rs 16.5 per litre from Rs 23 per litre, while the export duty on ATF has been cut to Rs 16 per litre from Rs 33 per litre.The ministry also said road and infrastructure cess on exports of petrol and diesel will remain nil. There is no change in duty rates for petrol and diesel sold in the domestic market.The government had first imposed export duties on diesel and ATF on March 26 at Rs 21.5 per litre and Rs 29.5 per litre, respectively. The levies were subsequently increased sharply on April 11 before being partially reduced during the April 30 review.The windfall taxes were introduced to ensure adequate domestic fuel availability and discourage excessive exports amid the disruption caused by the US-Israel and Iran conflict.Officials said the levies were also aimed at preventing exporters from benefiting disproportionately from higher global fuel prices and widening refining margins.Crude oil prices have remained above $100 per barrel in recent days compared with around $73 per barrel before the conflict escalated on February 28, when the US and Israel launched military strikes against Iran.“The windfall tax was to ensure domestic availability of petroleum products by disincentivising exports in the backdrop of the West Asia crises,” the ministry said.
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