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Windfall Tax Cut on Diesel and ATF Exports
The government charges a special tax when some fuels are exported.
From October 1, this tax will be lower for diesel and aviation turbine fuel, or ATF.
The diesel tax will fall from Rs 20 to Rs 16 per litre.
The ATF tax will fall from Rs 15 to Rs 10.5 per litre.
The tax on petrol exports will stay at Rs 0.5 per litre.
These rates will apply for two weeks.
The government introduced the taxes after tensions in West Asia pushed up global crude oil prices.
The goal was to keep enough fuel available inside the country and discourage exporters from taking advantage of price differences.
The government reduced the export duty on diesel to Rs 16 per litre from Rs 20.
The aviation turbine fuel export duty was cut to Rs 10.5 per litre from Rs 15.
The petrol export duty remained unchanged at Rs 0.5 per litre.
The revised rates take effect on October 1 for a fortnight.
The duties were introduced to support domestic fuel availability amid West Asia tensions and discourage excessive exports.
- Who
- The government, through the Ministry of Finance.
- What
- Reduced export duties on diesel and aviation turbine fuel while keeping the petrol export duty unchanged.
- Where
- The measure applies to fuel exports; the articles link it to tensions in West Asia.
- When
- Effective October 1, 2026, for the fortnight beginning that day.
- Why
- To support domestic fuel availability and discourage exporters from benefiting excessively from price differences during the West Asia crisis.
Key facts
- Diesel export duty
- Rs 16 per litre, down from Rs 20
- ATF export duty
- Rs 10.5 per litre, down from Rs 15
- Petrol export duty
- Rs 0.5 per litre, unchanged
- Effective date
- October 1, 2026
- Duration
- Fortnight beginning October 1
- Domestic fuel duties
- No change for petrol and diesel cleared for domestic consumption
- Policy purpose
- To support domestic availability and discourage undue export gains
Sources
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