The Indian government has reduced the windfall tax on the export of petrol, diesel and aviation turbine fuel (ATF), the oil used in airplanes, from Saturday. This information has been received from an official order of the government. According to this order, duty on diesel export has been reduced from Rs 25.5 per liter to Rs 24 per liter. At the same time, earlier there was a duty of Rs 3.5 per liter on petrol export, now it has been completely reduced to zero. Duty on export of ATF has also been reduced, from Rs 22 to Rs 19.5 per litre.
What effect will it have on your pocket?
This reduction in tax will not affect the general public. This reduction is expected to provide some relief to the exporting companies, however, the government is keeping an eye on the international market conditions and amendments may continue in the coming days.
It is noteworthy that India had implemented windfall tax for the first time in July 2022, so that the extraordinary profits arising from rising oil prices could be controlled. It was abolished two years later, but oil prices rose again in March 2026 after the US-Israeli war led to an attack on Iran, prompting the tax to be reimposed.
Currently, India revises these export duties every two weeks based on the international prices of crude oil and petroleum products. According to the latest rate, 1 US dollar is approximately equal to 95.44 Indian rupees.
Windfall tax was increased last time
Last time on August 3, the duty on petrol export was increased from Rs 2.5 to Rs 3.5 per litre. Windfall tax on diesel exports was increased from Rs 15.5 to Rs 25.5 per litre. There was a huge increase of about Rs 10 in this. At the same time, the duty on export of ATF was increased from Rs 14.5 to Rs 22 per liter.
Tax on diesel-ATF increased in July, petrol decreased
It is noteworthy that in the earlier review held on July 16, the government had increased the duty on diesel and ATF, while reduced the duty on petrol. At that time, the price of diesel increased from Rs 8.5 to Rs 15.5, ATF increased from Rs 7.5 to Rs 14.5, and petrol was reduced from Rs 4 to Rs 2.5 per liter. In the earlier review, duty on petrol was increased from Rs 1.5 to Rs 4, diesel was reduced from Rs 14 to Rs 8.5 and ATF was reduced from Rs 12.5 to Rs 7.5.
How was April?
If we look at the recent changes, on April 30, Rs 23 was imposed on diesel and Rs 33 on ATF, while it was zero on petrol. Whereas, on June 30, duty was fixed at Rs 4 on petrol, Rs 8.5 on diesel and Rs 7.5 on ATF.
