India Hikes Windfall Tax on Diesel and ATF Exports to Safeguard Domestic Fuel Supply
Brief By Newsbrief / 10:10 AM on 16 Jun 2026
The Central Government has increased the windfall tax on exports of diesel and Aviation Turbine Fuel (ATF), with the revised rates coming into effect from June 16 for the next 15 days. However, there has been no change in the export duty on petrol.
According to a notification issued by the Ministry of Finance, the special additional excise duty on diesel exports has been raised from ₹13.5 per litre to ₹14 per litre. Similarly, the duty on ATF exports has been increased significantly from ₹9.5 per litre to ₹12.5 per litre. The export duty on petrol remains unchanged at ₹1.5 per litre. The government has also decided not to alter the existing duty structure on petrol and diesel sold in the domestic market.
The decision comes at a time when geopolitical tensions in West Asia continue to create uncertainty in global energy markets. The government aims to ensure that domestic fuel supplies remain adequate and that refinery companies do not prioritize exports solely for higher profits. By raising export duties, authorities hope to discourage excessive exports and maintain sufficient availability of petroleum products within the country.
Although reports suggest progress in negotiations between the United States and Iran, the overall situation remains fragile. As a precautionary measure, India has chosen to strengthen its domestic fuel security through higher export levies.
Windfall taxes are designed to prevent companies from making excessive profits during periods of global disruptions and elevated crude oil prices. Such taxes help the government balance domestic demand and supply while ensuring that consumers are protected from potential shortages.
Notably, the government first imposed this duty on diesel and ATF exports in March. Since then, the tax rates have been revised multiple times in response to changes in international crude oil prices and evolving global market conditions.