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Govt cuts windfall gains tax on export of diesel, ATF beginning from October 1
Oct-01-2026

The government of India has reduced the windfall gains tax on export of diesel and Aviation Turbine Fuel (ATF), while retaining it at the same level for petrol. The government has reduced the rate of special additional excise duty (SAED) along with road and infrastructure cess on export of diesel to Rs 16 per litre from Rs 20 a litre. Further, SAED on export of ATF is set at Rs 10.5 per litre, as against Rs 15 per litre currently. The duty on petrol exports has been retained at Rs 0.5 per litre.

The Finance Ministry has notified that these duty cuts will be effective from October 1, 2026. The government imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight, as escalating tensions in West Asia disrupting crude oil supply and raising volatility in crude prices. Beginning May 16, the levy was imposed on petrol exports. The ministry added 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 by disincentivising exports amid the war in West Asia. The tax 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.

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