India Cuts Windfall Profit Tax on Diesel & ATF Exports
By Business Desk
India reduces windfall profit tax on diesel and ATF exports effective October 1, aligning domestic policies with global crude oil market conditions.
The Indian government has announced a downward revision of the windfall profit tax levied on the export of diesel and Aviation Turbine Fuel, effective from October 1, 2026. This adjustment follows a periodic review process that assesses international crude oil prices and refining margins to determine the Special Additional Excise Duty.
Revised Tax Rates and Market Context
The adjustments alter export duties across specific fuel categories for the period beginning October 1, 2026, while leaving domestic consumption taxes untouched.
- Windfall profit tax on diesel export was reduced by the administration.
- Levy on Aviation Turbine Fuel export was similarly lowered effective October 1, 2026.
- Periodic review framework assesses international crude oil prices and refining margins.
By lowering these levies, the administration aims to align domestic tax policies with current global energy market conditions. The framework was established to safeguard domestic fuel availability and prevent excess profiting from price disparities caused by crude oil volatility.