India Reduces Windfall Tax on Diesel and Aviation Fuel

The Government of India reduced the windfall tax on diesel and aviation turbine fuel (ATF) exports effective October 1, 2026. The export duty on diesel decreased to Rs 16 per litre from Rs 20 per litre, while the levy on ATF exports fell to Rs 10.5 per litre from Rs 15 per litre.

The windfall tax on petrol exports remains unchanged at Rs 0.5 per litre for the next fortnight. These revised rates are subject to review every two weeks based on international crude oil and petroleum product prices. The government noted that these changes do not affect excise duty rates for fuel cleared for domestic consumption.

Authorities originally imposed these export duties to ensure domestic fuel availability and prevent exporters from profiting from price differences caused by escalating tensions and war in West Asia.