The government has reduced the windfall gains tax on diesel and aviation turbine fuel (ATF) exports, while retaining the levy on petrol exports at the existing rate for the fortnight beginning October 1. The revised duties will apply from October 1, according to a finance ministry notification.

The special additional excise duty, together with the road and infrastructure cess, on exported diesel has been reduced to Rs. 16 per litre from Rs. 20 per litre. The levy on ATF exports has been cut to Rs. 10.5 per litre from Rs. 15 per litre.

The duty on petrol exports remains unchanged at Rs. 0.5 per litre. The finance ministry also retained the existing duty rates on petrol and diesel cleared for domestic consumption, meaning the latest changes apply only to export consignments.

The government introduced the export duty on diesel and ATF on March 27 amid escalating tensions in West Asia and has revised the rates every fortnight. The levy on petrol exports was introduced from May 16 as the authorities expanded the measures to cover additional petroleum products.

The windfall tax was intended to support domestic fuel availability during the West Asia conflict and discourage exporters from taking advantage of price differences between domestic and international markets. Global crude oil prices had risen after the conflict began, increasing the incentive to export refined fuel and prompting the government to use the levy as a supply management measure. The latest reduction lowers the burden on diesel and ATF exporters, while the unchanged petrol duty indicates that the government continues to review the three products separately during each fortnightly revision.