Govt slaps export tax on petrol, diesel; windfall tax on domestic crude oil

The government on Friday raised export duty on diesel by Rs 13/litre and that on petrol by Rs 6/litre.

The government also imposed a cess of Rs 6 per litre on exports of ATF.

According to the finance ministry, the objective to increase the taxes is to increase the domestic availability of fuel. However, it will not impact the domestic prices as per the statement issued.


The government also slapped a Rs 23,230 per tonne additional tax on domestically produced crude oil to take away windfall gains accruing to producers from high international oil prices, a separate government notification showed.

Further, small producers, whose annual production of crude in the preceding financial year is less than 2 million barrels will be exempt from this cess.

The tax on exports follows oil refiners, particularly the private sector, reaping huge gains from exporting fuel to markets such as Europe and the US.

The speculations of imposing such taxes were going on since May this year when the UK government had announced a 25% windfall tax on profits of oil and gas companies with crude surging over 50% in 2022 so far.

However, in a recent interview with ET Now, Harish Madhav, Oil India’s group finance director, said “there is nothing concrete going on with respect to this windfall tax, it is only being talked about in the circles and there is no concrete proposal which we are aware of,” while talking about the windfall tax.

(With inputs from agencies)