- The government has hiked windfall gains tax on export of petrol to ₹1.5 per litre, effective September 1, 2026, up from zero earlier.
- The levy on diesel exports has been increased to ₹25 per litre, up from ₹24 per litre in the previous revision.
- The levy on aviation turbine fuel (ATF) has been cut to ₹19 per litre, down from ₹19.5 per litre.
- These changes are part of the fortnightly revision to ensure domestic fuel availability amid the West Asia crisis.
- The export levies were first introduced on March 27, 2026, to ensure domestic availability of petroleum products amid the West Asia crisis.
- On May 16, 2026, the levy on petrol exports was imposed after initially being set to nil.
- In the previous revision on August 15, 2026, the government cut the levy on diesel exports to ₹24 per litre and removed the export duty on petrol.
India has raised the windfall tax on petrol exports to ₹1.5 per litre from nil, effective September 1, while increasing the diesel export levy to ₹25 per litre from ₹24. The aviation turbine fuel (ATF) duty has been slightly reduced to ₹19 per litre from ₹19.5.
The finance ministry's notification indicates that these adjustments are part of a fortnightly review based on international crude oil prices. The special additional excise duty (SAED) on petrol exports will now be ₹1.5, while for diesel, it comprises ₹24 as SAED and ₹1 as road and infrastructure cess (RIC). The ATF export duty is entirely under SAED.
These export levies were first introduced on March 27, 2026, amid rising global oil prices linked to the conflict in West Asia. The government aims to ensure adequate domestic fuel availability by discouraging exports during this crisis. The windfall tax was initially levied in July 2022 due to a sharp rise in global crude oil prices.5
The latest changes reverse the previous fortnight's relief for petrol exporters, which had seen the duty reduced to nil. The government has stated that there will be no changes to the existing excise duty rates on petrol and diesel for domestic consumption, ensuring that the revised rates apply only to exports.
The adjustments reflect ongoing volatility in global oil markets and the government's strategy to balance domestic supply with international pricing pressures.
“The revised levies, effective September 1, mark the latest fortnightly adjustment since the framework was reintroduced on March 27, 2026, to discourage exports amid the West Asia crisis. The previous revision on August 15 had cut diesel to ₹24/litre and petrol to nil, but the new rates reverse that relief for petrol and diesel while providing a 50-paise cut for ATF.”
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