India Slashes Windfall Tax on Petrol, Diesel and Jet Fuel

India makes fuel like petrol, diesel, and jet fuel, and sometimes sells some of it to other countries.

Selling fuel to other countries is called exporting, and companies that export fuel have to pay a special tax called a windfall tax.

The government has decided to lower this tax for three fuels.

The tax on petrol exports is now zero, so companies do not have to pay it anymore.

The tax on diesel exports went down from 25.5 rupees to 24 rupees per litre, and the tax on jet fuel exports went down from 22 rupees to 19.5 rupees per litre.

This special tax only applies to fuel sent to other countries, so fuel prices for people in India stay the same.

The government checks and changes these taxes every two weeks, depending on oil prices around the world.

The government first introduced this tax in 2022 when oil prices jumped, stopped it in 2024, and brought it back in 2026 because of fighting in West Asia.

The change mostly helps the oil companies that send fuel to other countries.