As global crude prices fall, Govt cuts windfall tax on fuel exports

With crude oil prices easing on the back of fears of an impending global recession, the Centre cut recently imposed cesses and levies on diesel and aviation turbine fuel and removed the cess on exports of petrol effective Wednesday.

Additional excise duty equal to Rs 6 per litre on petrol exports has been removed entirely, while that on diesel exports has been cut to Rs 11 per litre from Rs 13 per litre earlier. Also, the cess by way of special additional excise duty (or windfall tax) on domestic crude being sold to domestic refineries at international parity prices has been cut to Rs 17,000 per tonne from Rs 23,250 per tonne, while the export duty on aviation turbine fuel has been lowered by Rs 2 to Rs 4 per litre.