Government cuts windfall tax on diesel, ATF exports; petrol duty unchanged

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The revised levies will apply for a fortnight, with the finance ministry also retaining existing duties on fuel cleared for domestic consumption

By PTI

Updated - September 30, 2026 at 11:11 PM. | New Delhi

FILE PHOTO: Diesel exporters will pay ₹16 per litre and ATF exporters ₹10.5 per litre from October 1, following the government’s latest fortnightly revision of export duties. | Photo Credit: Dado Ruvic

The government on Wednesday cut the windfall gains tax on the export of diesel and aviation turbine fuel (ATF), while retaining it at the same level for petrol for the fortnight beginning October 1.

The rate of special additional excise duty (SAED) along with road and infrastructure cess on the export of diesel will now be Rs 16 per litre, down from Rs 20 a litre. SAED on export of ATF is set at Rs 10.5 per litre, as against Rs 15 per litre currently.

Duty on petrol exports has been retained at Rs 0.5 per litre for the next fortnight.

The finance ministry, in a notification, said the duty hikes will be effective from October 1.

Duties revised amid West Asia tensions

Amid escalating tensions in West Asia, the government had imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight. Beginning May 16, the levy was imposed on petrol exports.

The ministry also said that there was no change in the existing duty rates on petrol and diesel cleared for domestic consumption.

Windfall tax aimed at ensuring domestic fuel availability

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 crisis.

Published on September 30, 2026

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