Government hikes windfall tax on diesel, ATF exports; cuts petrol export duty to zero
According to a Finance Ministry notification issued on Saturday, the special additional excise duty (SAED) on ATF exports has been raised marginally to ₹11 per litre from ₹10.50 per litre.
- Oct 31, 2026,
- Updated Oct 31, 2026 5:27 PM IST
The government has increased the windfall gains tax on exports of diesel and aviation turbine fuel (ATF), while removing the levy on petrol shipments for the fortnight beginning October 31. The changes come amid continued volatility in global energy markets and geopolitical tensions in West Asia.
According to a Finance Ministry notification issued on Saturday, the special additional excise duty (SAED) on ATF exports has been raised marginally to ₹11 per litre from ₹10.50 per litre.
The levy on diesel exports has seen a sharper increase. The combined rate of SAED and road and infrastructure cess on exported diesel has been raised to ₹11.50 per litre from ₹8.50 per litre.
In contrast, the government has reduced the windfall tax on petrol exports to zero from ₹2.50 per litre. The revised rates will come into effect from October 31 and remain applicable for the next fortnight.
MUST READ: Petrol, diesel prices may rise after Diwali: What crude oil at $140 a barrel means for consumers
The Finance Ministry clarified that there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption. The latest revisions apply only to exports of the specified petroleum products.
Why is the government revising windfall taxes?
India introduced export duties on diesel and ATF on March 27 amid escalating tensions in West Asia and disruptions to global energy markets. The levy on petrol exports was subsequently introduced from May 16.
The government reviews these duties every fortnight, taking into account changes in international fuel prices and the potential gains that domestic refiners and exporters could make from overseas sales.
Windfall taxes are intended to prevent exporters from benefiting disproportionately when international prices rise sharply, particularly when domestic supplies need to be protected. By imposing duties on exports, the government seeks to make overseas sales less attractive and encourage refiners to maintain adequate availability in the domestic market.
ALSO READ: Indian gasoline demand to peak by 2035 as EVs, ethanol blending gain ground: IOC chairman
The measures were introduced against the backdrop of the West Asia conflict, which triggered volatility in crude oil and petroleum product prices and raised concerns over energy supply security.
The latest revision reflects a differentiated approach towards petroleum exports, with higher duties on diesel and ATF and the removal of the levy on petrol.
However, the government has retained the fortnightly review mechanism, allowing it to adjust export duties in response to changing international market conditions and domestic fuel availability.
(With PTI inputs)
The government has increased the windfall gains tax on exports of diesel and aviation turbine fuel (ATF), while removing the levy on petrol shipments for the fortnight beginning October 31. The changes come amid continued volatility in global energy markets and geopolitical tensions in West Asia.
According to a Finance Ministry notification issued on Saturday, the special additional excise duty (SAED) on ATF exports has been raised marginally to ₹11 per litre from ₹10.50 per litre.
The levy on diesel exports has seen a sharper increase. The combined rate of SAED and road and infrastructure cess on exported diesel has been raised to ₹11.50 per litre from ₹8.50 per litre.
In contrast, the government has reduced the windfall tax on petrol exports to zero from ₹2.50 per litre. The revised rates will come into effect from October 31 and remain applicable for the next fortnight.
MUST READ: Petrol, diesel prices may rise after Diwali: What crude oil at $140 a barrel means for consumers
The Finance Ministry clarified that there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption. The latest revisions apply only to exports of the specified petroleum products.
Why is the government revising windfall taxes?
India introduced export duties on diesel and ATF on March 27 amid escalating tensions in West Asia and disruptions to global energy markets. The levy on petrol exports was subsequently introduced from May 16.
The government reviews these duties every fortnight, taking into account changes in international fuel prices and the potential gains that domestic refiners and exporters could make from overseas sales.
Windfall taxes are intended to prevent exporters from benefiting disproportionately when international prices rise sharply, particularly when domestic supplies need to be protected. By imposing duties on exports, the government seeks to make overseas sales less attractive and encourage refiners to maintain adequate availability in the domestic market.
ALSO READ: Indian gasoline demand to peak by 2035 as EVs, ethanol blending gain ground: IOC chairman
The measures were introduced against the backdrop of the West Asia conflict, which triggered volatility in crude oil and petroleum product prices and raised concerns over energy supply security.
The latest revision reflects a differentiated approach towards petroleum exports, with higher duties on diesel and ATF and the removal of the levy on petrol.
However, the government has retained the fortnightly review mechanism, allowing it to adjust export duties in response to changing international market conditions and domestic fuel availability.
(With PTI inputs)