Government Lowers Windfall Tax and Export Duties on Fuel Products

In a recent move, the government has lowered the windfall tax and export levies on petrol, diesel, and aviation turbine fuel (ATF). This adjustment is part of the government's regular review process, which considers global oil price fluctuations and refinery margins. The export duty on petrol is now Rs 0.5 per litre, while diesel has been reduced to Rs 20 per litre. The ATF export levy is set at Rs 15 per litre. Despite these changes, domestic excise duty rates remain unchanged. This decision follows a series of adjustments in response to the volatility in international oil prices and geopolitical tensions.

By Narendra Chaudhary Sep 17, 2026, 13:55 IST

Recent Adjustments in Fuel Export Duties

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New Delhi, Sep 17: In a recent update, the government has announced a reduction in the windfall tax and export levies applicable to petrol, diesel, and aviation turbine fuel (ATF) as part of its regular review of petroleum product duties.

As per a notification from the Finance Ministry, the export duty on petrol has been decreased to Rs 0.5 per litre, which includes a Special Additional Excise Duty (SAED) of Rs 0.5 per litre, while the Revenue Integration Charge (RIC) remains at zero.

For diesel, the export duty has been lowered to Rs 20 per litre, consisting of a SAED of Rs 20 per litre, with no RIC applicable.

Additionally, the export levy on ATF has been reduced to Rs 15 per litre through the SAED.

However, the existing excise duty rates on petrol and diesel intended for domestic use remain unchanged, according to the ministry's statement.

The government conducts a review of the windfall tax on domestically produced crude oil and the export duties on petroleum products every two weeks, taking into account fluctuations in global crude oil prices and refinery margins.

This latest adjustment follows a series of modifications to petroleum export duties in recent months, driven by the volatility in international oil prices and ongoing geopolitical tensions.

In the previous update, effective from September 1, the government had reduced the export levy on diesel from Rs 3 per litre to Rs 1 per litre and lowered the windfall tax on diesel exports from Rs 24 per litre to Rs 19 per litre.

Earlier in August, the government had increased the export duty on petrol from Rs 2.5 per litre to Rs 3.5 per litre. The total duty on diesel was raised from Rs 15.5 per litre to Rs 25.5 per litre, while the ATF export levy was increased from Rs 14.5 per litre to Rs 22 per litre.