Government hikes windfall tax on diesel, ATF; cuts levy on petrol exports
The Indian government has increased windfall taxes on diesel and aviation turbine fuel exports while reducing the levy on petrol. These adjustments are intended to ensure domestic fuel availability amid ongoing geopolitical tensions in West Asia.
Why it matters
Windfall taxes directly impact the profitability of energy companies and reflect government efforts to manage domestic supply chains during international crises.
The government has increased the windfall gains tax on exports of diesel and ATF, while lowering the levy on petrol for the fortnight beginning Thursday (July 16, 2026).
The rate of Special Additional Excise Duty (SAED) on diesel exports has been increased to ₹15.5 a litre from ₹8.5 a litre. Similarly, SAED on ATF exports has been raised to ₹14.5 per litre from ₹7.5 per litre till Wednesday (July 15, 2026).
However, the export duty on petrol has been cut to ₹2.5 per litre, from ₹4 per litre. The Finance Ministry, in a notification, said the duty hikes will be effective from July 16.
Amid escalating tensions in West Asia, the government had on March 27 imposed an export duty on diesel and ATF (Aviation Turbine Fuel) and revised the rates every fortnight.
Beginning May 16, an export duty was also imposed on petrol.
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