Indian government has cut windfall taxes on exports of petrol, diesel and aviation turbine fuel (ATF), with the revised rates taking effect from Saturday, Aug. 15. The move comes as India continues to review export levies on petroleum products every fortnight based on international crude oil and fuel prices.
Under the latest government order, the duty on diesel exports has been reduced to Rs 24 per litre from Rs 25.5 per litre earlier. The export duty on petrol has been completely removed, falling to zero from Rs 3.5 per litre. The levy on aviation turbine fuel exports has been cut to Rs 19.5 per litre from Rs 22 per litre.
Petrol Export Duty Removed
Even when crude prices are still volatile in the global markets, India is revising prices for petrol, as the government has scrapped the export duty altogether. Diesel and ATF exporters, meanwhile, will see a smaller reduction in the levies applicable to overseas shipments.
The latest move follows a sharp increase in fuel export taxes earlier this month. On Aug. 3, the government raised the petrol export duty to Rs 3.5 per litre from Rs 2.5 per litre. The total duty on diesel exports was raised to Rs 25.5 per litre from Rs 15.5 per litre, while the levy on aviation fuel increased to Rs 22 per litre from Rs 14.5 per litre.
Windfall Tax Revised Every Fortnight
Every fortnight, India revises export levies on petroleum products to reflect the movements in international crude oil prices. This latest reduction is also a part of the government's regular adjustment mechanism and not a permanent change in the tax structure.
In July 2022, India first introduced windfall taxes on petroleum products to capture extraordinary gains from high crude oil prices globally. The levy was subsequently scrapped in 2024 but was brought back in March 2026 after crude prices surged during the US-Israeli war on Iran.
The latest reduction lowers the tax burden on fuel exports for the current fortnight, with the next revision expected as part of the government's regular review cycle.
Also Read: Windfall Tax Hike: Diesel Export Duty Climbs To Rs 24/Litre; Petrol, ATF Follow Suit
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