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Informist, Thursday, Sept. 17, 2026

 

NEW DELHI - The government has cut the windfall gains tax on exports of petrol, diesel, and aviation turbine fuel for the fortnight starting Thursday. According to a notification from the finance ministry, special additional excise duty, or windfall gains tax, on the export of petrol was cut by INR 1 per litre to INR 0.5 per litre. The levy on diesel exports was cut by INR 5 per litre to INR 20 per litre. For aviation turbine fuel exports, it was cut by INR 4 per litre to INR 15 per litre.

 

There is no change in the existing excise duty rates on petrol and diesel for domestic consumption, the ministry said. The INR 20-per-litre levy on diesel does not include road and infrastructure cess, as was the case for the last fortnight. Effective Sept. 1, the INR 25-per-litre windfall tax on diesel exports had included a cess of INR 1 per litre.

 

The export duties are reviewed every fortnight. Wednesday's notification marks the twelfth revision since the tax was imposed on Mar. 27. 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 a 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 prices 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 prices 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 revenues for itself but to ensure that exporters do not take "undue advantage due to price differences".

 

Although crude oil prices have cooled from the persistently high levels of around $120 per barrel seen earlier this fiscal, it has remained sensitive to flare-ups in West Asia. In the last six to seven days, prices have risen again and have crossed $100 per barrel for the first time since May.

 

The price of Brent crude oil rose in the last few days as concerns around energy supplies heightened after new ‌strikes on Saudi Arabian energy infrastructure and attacks on ships in West Asia. Crude oil prices were trading around $105 per barrel Wednesday.  End

 

US$1 = INR 95.95

 

Reported by Priyasmita Dutta 

Edited by Shubhayan Bhattacharya

 

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