India has cut its windfall tax on fuel exports from October 1, 2026. The Special Additional Excise Duty (SAED) on diesel exports falls to ₹16 per litre from ₹20, and on aviation turbine fuel (ATF) to ₹10.50 per litre from ₹15, while the petrol export levy stays at ₹0.50 per litre.
The levy was first imposed on March 27, 2026 amid West Asia tensions and is reviewed every two weeks by the Finance Ministry. It is designed to support domestic fuel availability by discouraging refiners from favouring exports when international prices spike, according to a report published October 1, 2026.
What Are the New Windfall Tax Rates on Diesel, ATF and Petrol Exports?
From October 1: diesel ₹16/litre (previously ₹20), ATF ₹10.50/litre (previously ₹15), petrol ₹0.50/litre (unchanged). An earlier revision on September 16 had already lowered diesel from ₹25 to ₹20 and ATF from ₹19 to ₹15, so diesel export duty has fallen ₹9 per litre in two fortnightly reviews. Domestic duty rates on petrol and diesel were not changed.
How Does the Cut Affect Refiners and Exporters?
A lower export levy narrows the gap between export and domestic realisations, making overseas sales more attractive to refiners than during the peak of the levy. The Finance Ministry’s stated aim, though, remains domestic supply security. No company statements or analyst estimates of earnings impact were found in the sources reviewed.
Market and Trade Reaction
No market reaction or trade-body comment was found at the time of writing. Separately, the same report noted that commercial LPG prices were raised by ₹62.59 per 19-kg cylinder, reflecting ongoing petroleum price adjustments.
What Happens Next?
Because rates are reviewed fortnightly, the next revision is expected in mid-October 2026 and will track international crude and product prices. Exporters should watch the Finance Ministry notification for each cycle.
Frequently Asked Questions
What is the windfall tax on diesel exports now?
It is ₹16 per litre from October 1, 2026, down from ₹20 per litre.
Why does India levy a windfall tax on fuel exports?
The levy, introduced on March 27, 2026, is meant to keep fuel available domestically and discourage exporters from profiting from the gap between domestic and global prices.
Did petrol export duty change?
No. The petrol export levy remains ₹0.50 per litre.
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