India revises petroleum export duties and windfall taxes

The Indian government has revised the duty structure for petroleum product exports, effective September 1. According to notifications from the Ministry of Finance, there are significant changes to the Special Additional Excise Duty (SAED) and windfall taxes applied to diesel, petrol, and aviation turbine fuel (ATF).

For diesel, the export duty has been reduced from 3 rupees per litre to 1 rupee per litre. Additionally, the windfall tax on diesel exports has been cut from 24 rupees per litre to 19 rupees per litre. These adjustments are expected to lower the cost structure for companies exporting diesel from India.

In contrast, the SAED on exported petrol has increased from zero to 1.50 rupees per litre. For diesel, the SAED remains at 24 rupees per litre, but the Road and Infrastructure Cess (RIC) has been raised from zero to 1 rupee per litre, bringing the total duty to 25 rupees per litre.

Regarding aviation fuel, the SAED has been reduced from 19.50 rupees per litre to 19 rupees per litre, a decrease of 0.50 rupees per litre. The government periodically reviews these rates based on international crude oil prices and domestic market conditions to ensure adequate fuel availability for domestic consumers.