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Informist, Saturday, May 30, 2026

NEW DELHI - The government Saturday cut the windfall gains tax on the export of petrol, diesel, and aviation turbine fuel for the fortnight starting Monday. According to a notification from the finance ministry, special additional excise duty, or windfall gains tax, on the export of petrol was reduced by INR 1.50 per litre to INR 3.00 and the tax on diesel exports was cut by INR 3.00 per litre to INR 13.50. The tax on aviation turbine fuel was cut by INR 6.50 per litre to INR 9.50 per litre.

There is no change in the existing excise duty rates on petrol and diesel for domestic consumption, the ministry said.

The export duties are reviewed every fortnight. Saturday's notification marks the fifth revision since the tax was imposed. The windfall gains tax rates are prescribed based on the average international prices of crude oil, petrol, diesel, and aviation turbine fuel prevailing in the period since the last review.

The government introduced special additional excise duty on exports of petrol, diesel, and aviation turbine fuel on Mar. 27 to ensure domestic availability of petroleum products by disincentivising exports in the wake of the surge in crude oil price following the 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 oil and gas supplies.

Brent crude oil price surged to a high of $123 per barrel after the war began, from the sub-$73 per-barrel level prevailing before the war. The government has repeatedly said the export duties, or windfall gains tax, are not meant to boost revenue for itself but to ensure that exporters do not take "undue advantage due to price differences".  End

US$1 = INR 95.00

Reported by Priyasmita Dutta 

Edited by Rajeev Pai

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