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Informist, Tuesday, Sept. 1, 2026

 

--Govt cuts windfall gains tax on diesel exports by INR 0.50 to INR 25/ltr

--Govt hikes windfall gains tax on petrol exports to INR 1.5/ltr from nil

--Govt cuts windfall gains tax on ATF exports by INR 0.50 to INR 19/ltr

 

NEW DELHI – The government has raised the windfall gains tax on exports of petrol while lowering it on exports of diesel and aviation turbine fuel for the fortnight starting Tuesday. According to a notification from the finance ministry, special additional excise duty, or windfall gains tax, on the export of petrol was hiked by INR 1.50 per litre from nil. The levy on diesel exports was cut by INR 0.50 per litre to INR 25 per litre. For aviation turbine fuel exports, it was cut by INR 0.50 per litre to INR 19 per litre.

 

There is no change in the existing excise duty rates on petrol and diesel for domestic consumption, the ministry said. The INR 25-per-litre levy on diesel includes road and infrastructure cess of INR 1 per litre.

 

The export duties are reviewed every fortnight. Tuesday's notification marks the eleventh revision since the tax was imposed on Mar. 27. The windfall gains tax rates are prescribed based on the average international prices of crude oil, petrol, diesel, and aviation turbine fuel prevailing in the period since the last review.

 

The government introduced a special additional excise duty on exports of petrol, diesel, and aviation turbine fuel on Mar. 27 to ensure domestic availability of petroleum products by disincentivising exports in the wake of the surge in crude oil prices following the war in West Asia. The war, which began Feb. 28, has increased India's exposure to energy and price shocks, given the country's dependence on the Persian Gulf region for oil and gas supplies.

 

Brent crude oil price surged to a high of $123 per barrel after the war began, from the sub-$73 per-barrel level prevailing before the war. The government has repeatedly said the export duties, or windfall gains tax, are not meant to boost revenue for itself but to ensure that exporters do not take "undue advantage due to price differences". After much ebb and flow, oil prices have cooled -- albeit seeing intermittent spikes -- and were trading around $91.95 Tuesday.  End

 

US$1 = INR 94.95

 

Reported by Priyasmita Dutta

Edited by Rajeev Pai

 

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