The government has revised the windfall tax on exports of petroleum products, increasing the levy on petrol while reducing the duty on diesel and aviation turbine fuel (ATF). At the same time, state-owned oil marketing companies (OMCs) have cut the prices of 19-kg commercial LPG cylinders by up to Rs 183.5 across major cities, providing relief to restaurants, hotels and other commercial establishments.
Both changes came into effect on July 1.
According to a Finance Ministry notification, the revised rates increase the Special Additional Excise Duty (SAED) on petrol exports to Rs 4 per litre, up from Rs 1.5 per litre earlier.
Meanwhile, the export duty on diesel has been reduced to Rs 8.5 per litre from Rs 14 per litre, while the levy on ATF exports has been cut to Rs 7.5 per litre from Rs 12.5 per litre.
The ministry clarified that there is no change in the existing excise duty on petrol and diesel sold for domestic consumption.
The government had first imposed export duties on diesel and ATF in March following the escalation of geopolitical tensions in West Asia to ensure adequate domestic availability of petroleum products. The rates are reviewed every fortnight. An export levy on petrol was introduced from May 16.
In the previous fortnightly revision, the government had increased the windfall tax on diesel and ATF exports while leaving the levy on petrol unchanged. At that time, the SAED on diesel exports was raised to Rs 14 per litre from Rs 13.5 per litre, while the duty on ATF exports was increased to Rs 12.5 per litre from Rs 9.5 per litre.
The windfall tax mechanism was introduced to discourage excessive exports and ensure sufficient domestic fuel supplies during periods of elevated global crude oil prices triggered by the conflict in West Asia.
Separately, state-owned OMCs reduced the price of 19-kg commercial LPG cylinders by up to Rs 183.5, offering relief to businesses that rely heavily on commercial cooking gas.
According to the revised price list, the commercial LPG cylinder price has been reduced by Rs 183.5 in Delhi and Lucknow, Rs 181.5 in Chandigarh, Rs 174 in Kolkata, and Rs 173 in Patna.
Following the latest revision, the price of a 19-kg commercial LPG cylinder now stands at Rs 2,930 in Delhi, down from Rs 3,113 earlier.
In Chandigarh, the revised price is Rs 2,954.50, while consumers in Kolkata will now pay Rs 3,081.50, compared to Rs 3,255.50 previously. In Patna, the price has been reduced to Rs 3,227.
The reduction comes after commercial LPG prices had witnessed multiple increases in recent months amid rising global energy prices linked to the conflict in West Asia.
However, the price of the 14.2-kg domestic LPG cylinder remains unchanged.
Earlier, the government had relaxed LPG supply restrictions for commercial and industrial users after fuel availability improved. It restored 50 per cent of supplies to customers whose allocations had previously been suspended to prioritise household consumption.
During the conflict, the government had invoked provisions under the Essential Commodities Act, directing that C3-C4 streams be used exclusively for LPG production instead of petrochemical and other downstream applications to ensure uninterrupted domestic fuel supplies.
The government also instructed oil marketing companies to continue maintaining comprehensive data on commercial and industrial LPG consumers to facilitate efficient planning and supply management.
