New Delhi: The Government on Friday cut the windfall tax on diesel exports and raised the levy on petrol exports for the fortnight beginning October 16.

The duty on ATF exports has been retained at Rs 10.5 per litre for the fortnight.

Follow The PSUWatch Channel on Whatsapp

The Special Additional Excise Duty (SAED), along with the road and infrastructure cess, on diesel exports will now be Rs 8.5 per litre, down from Rs 16 per litre.

The duty on petrol exports has been hiked to Rs 2.5 per litre, from Rs 0.5 per litre, for the next fortnight.

The Finance ministry in a notification said the duty hikes will be effective from October 16.

Amid escalating tensions in West Asia, the government imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight.

Beginning May 16, the levy was imposed on petrol exports.

The ministry also said that there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.

The windfall tax was levied to increase domestic availability of the fuel amid the war in West Asia.

Follow PSU Watch on LinkedIN

It was also aimed at preventing exporters from taking undue advantage due to price differences as global crude oil prices had risen since the war began.

The windfall tax was intended to ensure domestic availability of petroleum products by disincentivising exports amid the West Asia crises.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated.)