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A worker fills diesel in a car as he holds 500 Indian rupee banknotes at a fuel station in Kolkata, India. File/Reuters
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Firstpost•01-10-2026, 06:43
India Slashes Windfall Tax on Diesel, ATF Exports Again from October 1
  • •India has reduced the windfall tax on exports of diesel and aviation turbine fuel (ATF) for the second consecutive fortnight, effective October 1.
  • •The special additional excise duty on diesel exports is now Rs 16 per litre (down from Rs 20), and on ATF exports, it's Rs 10.5 per litre (down from Rs 15).
  • •The export duty on petrol remains unchanged at Rs 0.50 per litre for the fortnight beginning October 1.
  • •These reductions mean diesel exporters will pay Rs 4 less per litre, and ATF exporters will pay Rs 4.50 less per litre in levies.
  • •The government reviews these export levies every two weeks based on international crude oil and petroleum product prices to ensure domestic availability and prevent exporters from solely benefiting from price differences.

Key Questions Answered

The special additional excise duty on diesel exports has been reduced to Rs 16 per litre from Rs 20 per litre, while the levy on ATF exports has been cut to Rs 10.5 per litre from Rs 15 per litre.

No, the export duty on petrol has been kept unchanged at Rs 0.50 per litre for the fortnight beginning October 1.

India introduced export levies on petrol, diesel, and ATF to ensure domestic availability of petroleum products by discouraging exports and to prevent exporters from exploiting price differences during elevated global prices.