The government has updated the windfall tax rates on petrol and diesel exports effective October 16, 2026. It increased the tax on petrol exports while lowering the levy on diesel exports. These changes aim to balance export earnings with domestic fuel availability.
- Petrol export duty increased from ₹0.5 to ₹2.5 per litre.
- Diesel export duty reduced from ₹16 to ₹8.5 per litre.
- Aviation turbine fuel (ATF) export duty remains at ₹10.5 per litre.
- No change in domestic petrol and diesel duty rates.
- Windfall tax introduced to discourage exports amid high global prices.
What are the new windfall tax rates on petrol and diesel exports?
From October 16, 2026, the government increased the Special Additional Excise Duty (SAED) plus road and infrastructure cess on petrol exports to ₹2.5 per litre, up from ₹0.5 per litre. Meanwhile, the levy on diesel exports was cut to ₹8.5 per litre from ₹16 per litre.
Why did the government change these export duties?
The windfall tax was introduced to improve domestic availability of petroleum products by discouraging exports during times of high international prices. By adjusting export duties, the government aims to prevent exporters from taking undue advantage of global price surges and ensure sufficient fuel supply within the country.
What about aviation turbine fuel (ATF) export duties?
The export duty on ATF has been maintained at ₹10.5 per litre for the next fortnight. This rate was previously reduced from ₹15 per litre as part of ongoing adjustments based on market conditions.
Have domestic petrol and diesel prices changed?
There is no change in the existing duty rates on petrol and diesel sold for domestic consumption. This means the prices consumers pay at the pump remain unaffected by these export duty revisions.
When were these windfall taxes first introduced?
The government imposed export duties on diesel and ATF on March 27, 2026, and has revised the rates every two weeks depending on international crude oil and refined product prices amid geopolitical tensions in West Asia. The levy on petrol exports started later, from May 16, 2026.
Frequently Asked Questions
Q: What is the purpose of the windfall tax on fuel exports?
A: The windfall tax discourages excessive fuel exports during times of high global prices to ensure adequate domestic supply and prevent price spikes within the country.
Q: Will these changes affect fuel prices for consumers?
A: No, the duty rates on petrol and diesel for domestic consumption remain unchanged, so consumer prices at fuel stations are not impacted by these export duty adjustments.
Q: How often does the government revise these export duties?
A: The government reviews and revises the windfall tax rates every fortnight based on international crude oil and refined product prices.
