Government Raises Windfall Tax on Fuel Exports Amid Global Oil Volatility

<p>With crude prices swinging wildly due to geopolitical tensions, New Delhi has adjusted its windfall tax on petroleum exports for the second time this month. The new rates impose a charge of Rs 1.5 per litre on petrol exports and Rs 25 per litre on diesel exports.</p><p>Domestic fuel prices, however, have stayed within a tight range. The latest figures for September 2 show petrol prices varying from Rs 101 to Rs 116 per litre across the country, while diesel prices sit between Rs 89 and Rs 104 per litre. State taxes such as VAT and cess create a price spread of about Rs 14 per litre between some locations.</p><h2>Current Fuel Prices by City</h2><table><thead><tr><th>City</th><th>Petrol (Rs/L)</th><th>Diesel (Rs/L)</th></tr></thead><tbody><tr><td>Noida</td><td>102.12</td><td>95.20</td></tr><tr><td>Lucknow</td><td>102.05</td><td>95.36</td></tr><tr><td>New Delhi</td><td>102.12</td><td>95.20</td></tr><tr><td>Gurugram</td><td>102.77</td><td>95.70</td></tr><tr><td>Mumbai</td><td>111.18</td><td>97.83</td></tr><tr><td>Kolkata</td><td>113.47</td><td>99.82</td></tr><tr><td>Chennai</td><td>107.77</td><td>99.55</td></tr><tr><td>Bengaluru</td><td>110.93</td><td>99.56</td></tr><tr><td>Hyderabad</td><td>115.69</td><td>103.82</td></tr></tbody></table><p>The petrol export levy is fully classified under Special Additional Excise Duty (SAED). Diesel will incur Rs 24 per litre as SAED plus Rs 1 per litre as Road and Infrastructure Cess (RIC). Aviation Turbine Fuel (ATF) export duty stands at Rs 19 per litre, also under SAED.</p><p>These changes are part of the fortnightly export‑levy review that aligns duties with the average international prices of crude, petrol, diesel and ATF observed since the previous review. The mechanism gives the government flexibility to raise or lower export taxes quickly, ensuring adequate domestic fuel availability.</p><p>The government emphasizes that the levy applies only to exported volumes. Existing central excise duties for petrol and diesel sold within India remain unchanged, meaning pump prices are not directly affected by this latest export tax hike.</p>