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Govt slashes windfall tax on petrol, diesel, ATF exports
Sep-17-2026

The Indian government has cut the windfall gains tax on export of petrol, diesel and Aviation Turbine Fuel (ATF) for the fortnight beginning September 16, 2026. The rate of special additional excise duty (SAED) along with road and infrastructure cess on export of diesel has been slash down to Rs 20 per litre from Rs 25 per litre. SAED on export of ATF has been reduced to Rs 15 per litre as compared to earlier Rs 19 per litre. Further, duty on petrol exports has been cut to Rs 0.5 per litre from Rs 1.5 per litre in the previous fortnight.

The Government imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight amid escalating tensions in West Asia. 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. 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.

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