India cuts windfall tax on exports of petrol, diesel, aviation fuel

Synopsis

India has reduced windfall taxes on petrol, diesel, and aviation fuel exports. The duty on diesel exports is now 24 rupees per litre, while petrol duty is zero. Aviation turbine fuel exports will now face a 19.5 rupee per litre tax. These levies were first imposed in July 2022 and reintroduced in March 2026. India revises these export taxes every fortnight based on global oil prices.

India has reduced windfall taxes on petrol, diesel, and aviation fuel exports

India ​has lowered windfall taxes on exports ​of petrol, diesel and aviation turbine fuel with effect from Saturday, according to ‌a government ⁠order.

The ⁠duty on diesel exports has ​been cut to 24 Indian rupees ($0.2515) per ​litre from 25.5 rupees, while petrol duty has been set at zero ​rupees per litre, ⁠down from ‌3.5 rupees, the government ​order showed.

The ​tax on aviation turbine ⁠fuel has been set at ​19.5 rupees per litre from 22 ​rupees earlier.

India first imposed windfall taxes in July 2022 to capture extraordinary gains from soaring oil prices and scrapped it ‌two years later. The levy was reintroduced in March 2026 ​after ​oil prices surged ⁠during the U.S.-Israeli war on Iran.

India currently revises the export levies every ​fortnight, based on international prices of crude oil and petroleum products.

($1 = 95.4400 Indian rupees)