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Govt raises windfall gains tax on export of diesel, ATF; cuts duty on petrol exports to zero
Nov-02-2026

Amid elevated global crude oil prices, the government of India has raised windfall gains tax on export of diesel and Aviation Turbine Fuel (ATF). The duty on ATF exports has been hiked marginally to Rs 11/litre, from Rs 10.5/litre for the fortnight. The rate of special additional excise duty (SAED), along with road and infrastructure cess on export of diesel, has been increased to Rs 11.5 a litre, up from Rs 8.5 a litre. Meanwhile, government has slashed duty on export of petrol to nil, from Rs 2.5 per litre. The duty changes will be effective from October 31, 2026.

Further, there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption. 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 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 amid the West Asia crises.

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