Centre Cuts Windfall Tax on Exports of Petrol, Diesel, and ATF

The Central Government has reduced the windfall tax on the export of petrol, diesel, and aviation turbine fuel (ATF), providing relief to domestic oil refiners and fuel exporters. The revised tax rates came into effect on Saturday.

Under the latest notification, the government has completely eliminated the export duty on petrol, cutting it from ₹3.5 per litre to zero. The export duties on other key refined fuels have also been adjusted downward:

Petrol: Reduced from ₹3.5 per litre to Nil (₹0)

Diesel: Slashed from ₹25.5 per litre to ₹24 per litre

Aviation Turbine Fuel (ATF): Reduced from ₹22 per litre to ₹19.5 per litre

This reduction is expected to improve export margins and profitability for major domestic oil producers and refiners who sell refined petroleum products in international markets.

Background and Fortnightly Mechanism
The windfall tax, or Special Additional Excise Duty (SAED), is levied by the government on the supernormal profits earned by domestic energy companies when global crude oil and fuel prices surge.

The mechanism was first introduced in July 2022 to absorb excess profits generated from high global refining margins. Although it was later phased out after two years, the government reintroduced the levy in March 2026 in response to rising international crude prices driven by escalating geopolitical tensions in the Middle East.

India reviews the windfall tax rates on a fortnightly basis, calibrating the duties every 15 days based on the prevailing average international prices of crude oil and petroleum products.