Petrol Diesel Update: Good news for common people. The Indian government has recently decreased the windfall tax on the export of petrol, diesel, and aviation turbine fuel (ATF) starting from Saturday, as per an official government order. The duty on diesel export has been lowered from Rs 25.5 per liter to Rs 24 per liter, while the duty on petrol export has been completely eliminated from Rs 3.5 per liter to zero. Additionally, the duty on ATF export has also been reduced from Rs 22 to Rs 19.5 per liter.
Impact on the public
The reduction in taxes is not expected to affect the general public directly. Exporting companies are likely to benefit from this tax cut, although the government is keeping a close eye on international market conditions, with possible further revisions in the future.
India initially introduced the windfall tax in July 2022 to control the excessive profits due to surging oil prices. Although the tax was removed two years later, it was reinstated in March 2026 following a spike in oil prices after the US-Israeli conflict with Iran.
Tax revisions and currency exchange
The export duties are now adjusted every two weeks in India based on global crude oil and petroleum product prices. The current exchange rate stands at approximately 1 US dollar to 95.44 Indian rupees. The most recent tax hike occurred on August 3, with duties on petrol exports increasing from Rs 2.5 to Rs 3.5 per liter, diesel exports from Rs 15.5 to Rs 25.5 per liter, and ATF exports from Rs 14.5 to Rs 22 per liter.
Previous tax adjustments
During a review on July 16, the duties on diesel and ATF were raised, while the duty on petrol was reduced. Diesel saw an increase from 8.5 to 15.5 rupees, ATF from 7.5 to 14.5 rupees, and petrol was decreased from 4 rupees to 2.5 rupees per liter. In April, diesel was taxed at Rs 23, ATF at Rs 33, and petrol had zero duty. By June, the duties were set at Rs 4 for petrol, Rs 8.5 for diesel, and Rs 7.5 for ATF.