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Informist, Thursday, Oct. 1, 2026

NEW DELHI – The government has cut the windfall gains tax on exports of diesel and aviation turbine fuel for the fortnight starting Thursday. The windfall gains tax on exports of petrol was left unchanged for the period.

According to a notification from the finance ministry Wednesday, special additional excise duty, or windfall gains tax, on the export of diesel was reduced by INR 4 per litre to INR 16 a litre. The levy on aviation turbine fuel exports was cut by INR 4.5 per litre to INR 10.5 a litre. Whereas the duty on petrol exports was unchanged at INR 0.5 per litre. "This notification shall come into force with effect from 1st October, 2026," the ministry said in a gazette notification late Wednesday.
 

The export duties on fuel are reviewed every fortnight. 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 days, prices have risen to cross the $100 per barrel level amid the uncertainities in the war. Crude oil prices were trading around $97.35 per barrel Thursday.  End

US$1 = INR 95.91

Reported by Shweta

Edited by Akul Nishant Akhoury

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