The government has increased the windfall gains tax on exports of diesel and ATF, while lowering the levy on petrol for the fortnight beginning Thursday, 16 July, 2026.
By how much have taxes increased?
The rate of Special Additional Excise Duty (SAED) on diesel exports has been increased to ₹15.5 a litre from ₹8.5 a litre. Similarly, SAED on ATF exports has been raised to ₹14.5 per litre from ₹7.5 per litre till July 15.
By how much has the govt cut taxes?
However, the export duty on petrol has been cut to ₹2.5 per litre, from ₹4 per litre. The Finance ministry in a notification said the duty hikes will be effective from July 16.
Govt levied export duty on diesel during US-Iran war?
Amid escalating tensions in West Asia, the government had on March 27 imposed an export duty on diesel and ATF (Aviation Turbine Fuel) and revised the rates every fortnight. Beginning May 16, an export duty was also imposed on petrol.
Govt leaves taxes on domestic fuel untouched
The ministry also said that there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.
Why govt revises taxes on fuel exports?
The windfall tax was levied to increase domestic availability of the fuel amid the war in West Asia.
They were also aimed at not allowing exporters to take undue advantage due to price differences as globally crude oil prices had risen since the beginning of the war.
The windfall tax was intended to ensure domestic availability of petroleum products by disincentivising exports in the backdrop of the West Asia crisis.
