India Cuts Petrol Export Windfall Tax to Zero; Diesel Duty to ₹24 Per Litre

Written by: Team Angel OneUpdated on: 16 Aug 2026, 12:15 am IST

India cuts windfall taxes on diesel and ATF exports and removes the levy on petrol, with the revised rates effective Saturday.

India has revised the windfall tax on exports of petrol, diesel and aviation turbine fuel (ATF), lowering the duties on diesel and ATF while bringing the petrol levy down to zero.

Petrol Export Duty Reduced to Zero

The export duty on petrol has been cut to ₹0 per litre from ₹3.50 per litre. Diesel exports will now attract a duty of ₹24 per litre, compared with ₹25.50 earlier.

The duty on ATF has also been reduced to ₹19.50 per litre from ₹22 per litre. The revised rates take effect from Saturday, according to a government order.

Windfall Tax History

India introduced windfall taxes in July 2022 to capture extraordinary gains made by oil producers and refiners as crude prices surged. The levy was scrapped two years later.

The government brought the tax back in March 2026, following a rise in oil prices during the US-Israeli war on Iran.

Rates Linked to Global Oil Prices

India reviews the export levies every fortnight, taking into account international prices of crude oil and petroleum products.

The latest revision lowers the diesel duty by ₹1.50 per litre and the ATF duty by ₹2.50 per litre, while removing the petrol export levy altogether.

Conclusion

Following the latest government order, petrol exports carry no windfall tax, while diesel and ATF exports face lower duties of ₹24 and ₹19.50 per litre, respectively. The rates remain subject to fortnightly revisions based on international oil and petroleum product prices.

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Published on: Aug 15, 2026, 6:45 PM IST

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