Government Raises Windfall Tax On Petrol, Diesel And ATF Exports

Diesel export levies just jumped by more than 50% in a single fortnightly review. Note that the government has revised export duties on all three major petroleum products upward from 03 August, with the sharpest increase falling on diesel.

The New Rates

• Diesel: ₹25.5 per litre, up from ₹15.5 per litre

• Aviation turbine fuel (ATF): ₹22 per litre, up from ₹14.5 per litre

• Petrol: ₹3.5 per litre, up from ₹2.5 per litre

Excise duty on petrol and diesel for domestic consumption stays where it is, and nothing changes at the pump for Indian consumers.

How The Rates Have Moved

The 16 July revision raised diesel to ₹15.5 per litre and aviation turbine fuel to ₹14.5 per litre while cutting petrol to ₹2.5 per litre. The August round reverses the petrol reduction and lifts all three products, with diesel seeing the steepest jump.

For context, diesel export duty was at ₹23 per litre on 30 April before being adjusted downward and is now heading back up.

Why These Levies Were Introduced

Export duties on petroleum products went into effect on 27 March 2026, introduced specifically to keep fuel flowing into the domestic market as the West Asia conflict disrupted regional energy trade. Disincentivising exports was the stated goal. The rates get reviewed every two weeks based on average international prices of crude oil, petrol, diesel and aviation turbine fuel since the prior review.

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