The Government of India has increased the windfall tax on exports of petrol, diesel and aviation turbine fuel (ATF), with the revised rates taking effect from August 3, 2026, as part of its periodic review of export levies on petroleum products. The decision was announced through notifications issued by the Finance Ministry.
Under the revised structure, the export duty on petrol has been raised to ₹3.5 per litre, while the levy on diesel has increased sharply to ₹25.5 per litre. The export tax on aviation turbine fuel (ATF) has also been increased to ₹22 per litre, reflecting the government’s effort to balance domestic fuel availability with changing global crude oil dynamics.
The latest revision follows the government’s fortnightly review mechanism for windfall taxes, which are linked to international crude oil prices and refining margins. India had reintroduced these export levies in March 2026 after geopolitical tensions in West Asia triggered a surge in global oil prices and concerns over domestic fuel security.
The government has clarified that the revised duties apply only to exports of refined petroleum products and do not affect domestic excise duties on petrol and diesel, meaning retail fuel prices for Indian consumers remain unchanged for now.
Industry experts believe the higher export duties could weigh on the export margins of refiners with significant overseas sales, while helping ensure adequate domestic fuel supplies during periods of elevated global uncertainty. The move also enables the government to capture a larger share of windfall gains generated by exporters when international refining margins remain elevated.
Key Highlights
- Export duty on petrol increased to ₹3.5/litre
- Export duty on diesel raised to ₹25.5/litre
- Export levy on ATF increased to ₹22/litre
- Revised duties effective August 3, 2026
- No change in domestic excise duties or retail fuel prices
- Decision follows the government’s periodic review of export levies amid global oil market volatility.
Source: Ministry of Finance notifications.
