India Reduces Windfall Tax on Petrol, Diesel and ATF Exports; New Rates Effective September 16, 2026

The Centre has reduced the windfall tax on exports of petrol, diesel and aviation turbine fuel (ATF), as per news reports. The new rates came into effect on September 16, 2026, following the government’s latest fortnightly review of petroleum export duties. 

The duty on petrol exports has been reduced to ₹0.5 per litre from ₹1.5 per litre. The levy on diesel exports is now ₹20 per litre, down from ₹25 per litre. For ATF, the export duty has been cut to ₹15 per litre from ₹19 per litre. 

Details of the Revised Rates 

The Finance Ministry said the ₹0.5-per-litre petrol export duty will be charged entirely as Special Additional Excise Duty (SAED). The Road and Infrastructure Cess (RIC) remains nil. 

For diesel, the revised ₹20-per-litre levy consists of ₹20 as SAED, with no RIC. The ₹15-per-litre duty on ATF exports is also charged as SAED. 

Domestic Fuel Taxes Remain Unchanged 

The reduction applies to export duties and does not change the existing excise duty rates on petrol and diesel sold in the domestic market. 

The government reviews the windfall tax on domestically produced crude oil and petroleum exports every two weeks. The rates are based on average international prices of crude oil, petrol, diesel, and ATF recorded since the previous review. 

Previous Revision Was on September 1, 2026 

The export levies were last revised on September 1, 2026. The government introduced the duties on March 27, 2026, amid the West Asia crisis. The stated objective was to discourage exports and maintain adequate domestic availability of petroleum products. 

The latest rate changes come as crude prices have risen over the past two weeks. The increase has been linked to the Middle East conflict and disruptions to Saudi Arabian pipeline infrastructure. 

Brent Crude at $107.8 a Barrel 

On Wednesday, Brent crude was priced at $107.8 a barrel. International prices of crude and petroleum products are considered during the fortnightly review of the export levies. 

The revised rates apply from September 16, 2026, and will remain in place until the next review, when the government will reassess the applicable duties. 

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Conclusion  

The fortnightly review cuts export levies on all three petroleum products. There is no change in the excise duty rates for domestic petrol and diesel. 

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