April23 , 2026

    Centre cuts windfall tax on domestic crude, hikes levy on diesel, ATF exports

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    The Centre, on September 1 , cut the special additional excise duty (SAED) on crude petroleum to Rs 6,700 per tonne, effective September 2.

    Earlier, in the previous fortnightly review on August 14, the government had set the windfall tax on domestically-produced crude oil at Rs 7,100 per tonne.

    Meanwhile, the SAED or duty on export of diesel has been raised to Rs 6 per litre from Rs 5.50 per litre. The duty on jet fuel or ATF will be doubled to Rs 4 per litre from Rs 2 per litre, stated the Ministry of Finance. The SAED on crude petroleum will reduce from Rs 7100 per tonne to Rs 6700 per tonne.

    The ministry further noted that the duty on petroleum exports will continue at nil.

    The Centre rolled out windfall profit taxes on crude oil producers last July. It later extended the tax imposition on gasoline, diesel and aviation fuel exports following demands of private refiners to bank of the solid refining margins in overseas markets, instead of selling in the sector.

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