The central government has revised the windfall tax on fuel exports, increasing the export duty on diesel and aviation turbine fuel (ATF) while reducing the levy on petrol. The revised rates came into effect on July 16, 2026, as part of the government’s regular review of export duties linked to global crude oil prices.
Under the new notification, the export duty on diesel has been increased from ₹8.50 per litre to ₹15.50 per litre, while the duty on aviation turbine fuel (ATF) has been raised from ₹7.50 per litre to ₹14.50 per litre. In contrast, the export duty on petrol has been reduced from ₹4.00 per litre to ₹2.50 per litre.
The government reviews these duties every two weeks to align with fluctuations in international crude oil prices and refining margins. The latest revision follows a sharp rise in global oil prices, which has boosted profits for fuel exporters.
Windfall taxes are imposed to capture a portion of the additional earnings made by oil producers and refiners during periods of exceptionally high crude prices. By adjusting export duties, the government aims to balance exporter profits with domestic fuel availability and price stability.
The increase in duties on diesel and ATF exports is expected to encourage refiners to prioritize domestic supply while allowing the government to collect a larger share of the gains resulting from elevated global energy prices. Meanwhile, the reduction in the petrol export duty reflects changing market dynamics and export margins for the fuel.
Industry experts will closely monitor the impact of the revised duties on refining companies, export volumes, and the broader energy sector in the coming weeks as global oil markets continue to remain volatile.
Disclaimer: This article is sponsored. The editorial team has independently verified the content, but the sponsor's views and opinions may differ from our own.