The government has cut windfall gains tax on fuel exports, lowering it to Rs 1.5 per litre for petrol from Rs 3 and diesel rates have been revised to Rs 13.5 from Rs 16.5 per litre. For aviation turbine fuel (ATF), windfall gains tax has be reduced to Rs 9.5 per litre from Rs 16 with the revised rates coming into effect from Monday, June 1 onwards, according to a notification by the Ministry of Finance.
There is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption.
The rates are prescribed based on the average international prices of crude oil, petrol, diesel and ATF prevailing during the period since the last review. Rate revision is done on a fortnightly basis and the last such change was undertaken with effect from 16th May, 2026.
The latest development comes as global crude prices have risen sharply since the outbreak of the US-Iran war as supply restrictions linked to the conflict and disruption around the Strait of Hormuz have added to market pressure.
The windfall tax mechanism is used to curb gains made by exporters when overseas prices rise sharply above domestic levels.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
