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Informist, Friday, May 15, 2026

 

--Govt imposes windfall gains tax on petrol exports at INR 3/ltr from Sat 

--Govt cuts windfall gains tax on ATF exports by INR 17 to INR 16/ltr 

--Govt cuts windfall gains tax on diesel exports by INR 6.5 to INR 16.5/ltr 

 

NEW DELHI – The government Friday cut the windfall gains tax on the export of diesel and aviation turbine fuel for the fortnight starting Saturday. According to a notification issued by the finance ministry Friday, special additional excise duty, or windfall gains tax, on the export of diesel was reduced by INR 6.50 to INR 16.50 per litre. The tax on aviation turbine fuel was cut by INR 17 to INR 16 per litre. The government also introduced windfall gains tax of INR 3 per litre on the export of petrol. There is no change in the existing excise duty rates on petrol and diesel for domestic consumption.

 

The government introduced special additional excise duty on exports of petrol, diesel, and aviation turbine fuel with effect from Mar. 27 to ensure domestic availability of petroleum products by disincentivising exports in the wake of the surge in crude oil price following the outbreak of war in West Asia. The war, which began Feb. 28, has increased India's exposure to energy and price shocks, given the country's dependence on the Persian Gulf region for crude oil and liquefied petroleum gas supplies.

 

Crude oil price surged to a four-year high of $126 per barrel after the war began, from the sub-$73 per-barrel level prevailing before the war. The government has repeatedly said the increase in export duties was not to boost revenue for itself but to ensure that exporters do not take "undue advantage due to price differences".

 

The duties are reviewed fortnightly. Friday's notification marks the fourth revision since the tax was imposed.  End

 

US$1 = INR 95.96

 

Reported by Priyasmita Dutta

Edited by Rajeev Pai

 

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