India has announced revised windfall tax rates on fuel exports, reducing levies on petrol, diesel and aviation turbine fuel (ATF) with effect from June 1, 2026.
Under the latest notification issued by the Ministry of Finance, the export tax on petrol has been reduced from Rs 3 per litre to Rs 1.5 per litre.
The levy on diesel exports has been cut from Rs 16.5 per litre to Rs 13.5 per litre, while the tax on aviation turbine fuel exports has been lowered from Rs 16 per litre to Rs 9.5 per litre.
The revised rates are as follows:
Petrol: Rs 1.5 per litre (previously Rs 3)
Diesel: Rs 13.5 per litre (previously Rs 16.5)
Aviation Turbine Fuel (ATF): Rs 9.5 per litre (previously Rs 16)
Officials clarified that there is no change in excise duties on petrol and diesel sold for domestic consumption. As a result, the revision will not impact fuel prices at retail petrol pumps across the country.
The decision follows the government’s routine fortnightly review of international crude oil and fuel prices. Windfall taxes are adjusted periodically based on movements in global energy markets.
The latest revision comes amid heightened volatility in oil markets due to concerns over global supply disruptions and geopolitical tensions affecting energy trade routes.
The windfall tax mechanism is designed to regulate extraordinary profits earned by exporters when international fuel prices rise significantly above domestic market levels.
The previous revision of export duties had come into effect on May 16, with the government continuing to monitor global crude oil trends and fuel market conditions.
