Centre Cuts Windfall Tax, Cess On Diesel Exports Effective Sept 1
The Centre has revised the duty structure on exports of petroleum products with effect from September 1, cutting the Road and Infrastructure Cess (RIC) on diesel exports to Rs 1 per litre from Rs 3 per litre and the Special Additional Excise Duty (SAED), or windfall tax, on diesel exports to Rs 19 per litre from Rs 24 per litre, according to a government notification.
The latest revision applies for the next fortnight and follows the government's practice of reviewing export levies on petroleum products every 15 days based on average international prices of crude oil, petrol, diesel and aviation turbine fuel (ATF) since the previous review.
Export levies in the form of SAED and RIC were introduced from March 27, 2026, with the aim of ensuring domestic availability of petroleum products by discouraging exports amid the West Asia crisis. The rates were last revised with effect from August 15, 2026.
Revised Export Duty Structure
Under the revised structure effective September 1, the RIC on diesel exports has been reduced to Rs 1 per litre from Rs 3 per litre, while the SAED on diesel has been reduced to Rs 19 per litre from Rs 24 per litre. For petrol exports, the government has fixed the SAED at Rs 1.5 per litre, with no RIC. For ATF exports, the SAED has been fixed at Rs 19 per litre.
The government said the rates are prescribed based on the average international prices of crude oil, petrol, diesel and ATF prevailing during the period since the last review.
No Change in Domestic Excise Duty
The latest changes relate to petroleum products meant for export. There is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption, according to the government.
The revised rates have been notified by the Central Government through three separate notifications issued by the Ministry of Finance's Department of Revenue on September 1. (ANI)
(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)
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