New Delhi, May 31: The Central Government has announced a fresh reduction in export duties on key petroleum products, lowering the windfall tax on petrol, diesel and aviation turbine fuel (ATF) with effect from June 1. The decision comes as authorities continue to monitor domestic fuel availability alongside developments in international energy markets.
According to a notification issued by the Finance Ministry, the special additional excise duty on petrol exports has been reduced by 50 percent to Rs 1.5 per litre. Export duties on diesel and ATF have also been revised downward to Rs 13.5 per litre and Rs 9.5 per litre respectively.
The latest revision follows a fortnightly assessment mechanism adopted by the government to review taxation on petroleum exports. Alongside the duty cuts, the road and infrastructure cess applicable to exported petrol and diesel has been removed, providing additional relief to fuel exporters.
Officials clarified that there will be no change in the tax structure for petrol and diesel supplied within the domestic market. Retail fuel availability and pricing for Indian consumers are therefore expected to remain unaffected by the latest adjustments.
The move marks another step in the gradual recalibration of export levies introduced earlier this year when geopolitical tensions in West Asia triggered sharp volatility in crude oil prices. Rising international benchmarks had significantly widened the gap between domestic and overseas fuel prices, prompting concerns about excessive exports and potential pressure on local supplies.
Since the introduction of the export duty framework, tax rates have undergone multiple revisions in response to changing market conditions. Authorities have steadily lowered the levies as supply concerns eased and the global energy market showed signs of stabilisation.
Energy analysts believe the reduction could improve the export competitiveness of Indian refiners while maintaining adequate safeguards for domestic fuel security. The decision is also expected to provide operational flexibility to companies engaged in overseas fuel shipments.
Global crude oil prices have remained elevated following ongoing tensions in the Middle East, although recent market movements have been less volatile than in the immediate aftermath of the conflict. Policymakers continue to closely track international developments and their potential impact on India’s energy sector.
The government has maintained that the objective of the windfall tax mechanism is to ensure sufficient domestic availability of petroleum products while preventing extraordinary gains arising from sudden disruptions in global energy markets. Future revisions are likely to depend on crude oil trends, export patterns and domestic supply requirements.