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Petrol-Diesel Windfall Tax: The central government took a major decision at midnight regarding the export of petrol, diesel, and aviation fuel. The government has reduced the windfall tax on these fuels. Read the full report.

Petrol, Diesel, and ATF Windfall Tax Reduced: The central government announced a significant decision at midnight on Independence Day. The windfall tax has been reduced by ₹3.50 per litre for petrol and ₹1.50 per litre for diesel. Additionally, the windfall tax on the export of aviation fuel has also been lowered.

According to the government order, the duty on diesel exports has been reduced from ₹25.50 to ₹24 per litre, while the duty on petrol has been reduced from ₹3.50 to ₹ 0 per litre. Regarding Aviation Turbine Fuel (ATF), the tax was previously ₹22 per litre and has now been set at ₹19.50 per litre—a reduction of ₹2.50.

The government had reimposed the windfall tax earlier this year, following disruptions in crude oil supplies caused by tensions involving Iran and the US. The government had initially levied a windfall tax in July 2022 on the extraordinary profits arising from soaring crude oil prices.

This decision comes at a time of ongoing tension between the US and Iran and a global surge in crude oil prices. Benchmark Brent crude is currently hovering around $87 per barrel.

It is worth noting that the Indian government reviews export levies every fortnight based on international rates for crude oil and petroleum products, allowing the duties to be adjusted in line with fluctuations in international crude oil prices and refining margins.

Will this impact petrol and diesel prices? Keep in mind that changes in the windfall tax do not directly affect the prices of the petrol and diesel you put in your vehicle. The windfall tax is levied only on the excess profits of major companies involved in oil extraction and overseas sales, such as ONGC or Reliance; therefore, a reduction in this tax does not make petrol and diesel cheaper for the general public.