India raises windfall tax on petrol, cuts duty on diesel

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In their latest fortnightly review, the government increased the export levy on petrol whilst lowering the levy on diesel and keeping that on aviation turbine fuel (ATF) unchanged.

There is no change in the duty of either of the retail fuels meant for domestic consumption.

The export levy on petrol has been increased to ₹2.5 per litre from ₹0.5 per litre as accorded in the last review.

Diesel exports would now be subject to a levy of ₹8.5 per litre, lower than ₹16 per litre from the last review.

The rates are applicable for a fifteen-day period commencing October 16.

The government has been conducting a fortnightly review of export levies since March 27, in the backdrop of the conflict in West Asia. These are done based on the average international benchmark prices of crude oil, petrol, diesel and ATF observed since the previous review.

This is to ensure the domestic availability of retail fuels by disincentivising exports.

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