India Cuts Windfall Tax on Diesel & ATF Exports
By ThePip Desk
India reduces the Special Additional Excise Duty on diesel and ATF exports effective October 1, 2026, while keeping petrol duty unchanged.
The government of India has reduced the windfall gains tax on the export of diesel and Aviation Turbine Fuel, while retaining the levy unchanged for petrol. These duty cuts are officially effective from October 1, 2026, following a notification issued by the Finance Ministry.
Revised Export Tax Rates
The adjustments alter the Special Additional Excise Duty along with the road and infrastructure cess for key petroleum products. Traders and market participants are tracking the following revised metrics:
- Diesel export duty cut to Rs 16 per litre from Rs 20 per litre.
- ATF export duty set at Rs 10.5 per litre, down from Rs 15 per litre.
- Petrol export duty maintained unchanged at Rs 0.5 per litre.
The government initially imposed an export duty on diesel and ATF on March 27. Officials revise these rates every fortnight to counter disruptions in crude oil supply and volatility stemming from escalating tensions in West Asia.
Domestic Consumption and Policy Origins
Authorities confirmed that there is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption. The windfall tax framework was originally established to increase domestic fuel availability by disincentivising exports and preventing exporters from capitalizing on price gaps created by global crude fluctuations.