India revised windfall tax rates on exports of diesel, aviation turbine fuel (ATF) and petrol; the Ministry of Finance issued the revision on 15 July 2026, effective 16 July 2026 under its fortnightly fuel-export duty review.
Revised Rates (effective 16 July 2026)
- Diesel: Export duty increased by ₹7.00 per litre from ₹8.50 to ₹15.50 per litre.
- ATF (Aviation Turbine Fuel): Export duty increased by ₹7.00 per litre from ₹7.50 to ₹14.50 per litre.
- Petrol: Export duty reduced by ₹1.50 per litre from ₹4.00 to ₹2.50 per litre.
Scope and Legal/Institutional Basis
- Applicability: Levy applies to exports of petroleum products by refiners; domestic sales are exempt.
- Authority: Rates notified by the Ministry of Finance; export duties implemented through CBIC customs notifications.
- Tax type: Treated as an export duty/windfall levy on excess refining margins.
Review Mechanism and Operational Parameters
- Review frequency: Fortnightly adjustments aligned to international crude prices and refining margins.
- Objective tool: Used to influence export flows when international price movements widen refinery margins.
Exam Facts
- Windfall tax defined: An additional levy on unexpected or excess profits in a sector.
- ATF usage: Fuel for civil and military aircraft; sensitive for international aviation services.