The Indian government has revised the windfall tax on fuel exports effective September 1, increasing the export duty on petrol from zero to ₹1.5 per litre and on diesel by ₹1 per litre. Meanwhile, the levy on aviation turbine fuel (ATF) exports has been reduced by ₹0.5 per litre, according to livemint.com.
The changes were announced as part of the government's ongoing efforts to regulate fuel exports amid global market fluctuations. The special excise duty on diesel exports has been raised by ₹1, while the ATF export levy was cut by ₹0.5. These adjustments aim to balance domestic fuel availability and government revenue, as detailed by Garvit Bhirani at livemint.com.
This revision follows earlier measures to impose windfall taxes on fuel exports to curb excessive profiteering during volatile oil price periods. The increased duties on petrol and diesel exports are expected to moderate export volumes and ensure adequate domestic supply. The reduction in ATF levy may support the aviation sector by lowering costs, reflecting the government's calibrated approach to different fuel segments.
The new export duties came into effect on September 1, 2026, marking the latest step in India's fuel taxation policy. The government’s decision was reported by livemint.com on the same day, providing clarity on export levies for market participants and stakeholders.