India cuts windfall taxes on diesel, petrol and ATF exports
Business
India just cut windfall taxes on fuel exports, starting Saturday, August 15, 2026.
Diesel export duty drops from ₹25.5 to ₹24 per liter, petrol export tax is gone (was ₹3.5), and aviation turbine fuel (ATF) now costs less to export at ₹19.5 per liter instead of ₹22.
India reintroduced windfall taxes this March
Windfall taxes were first put in place back in 2022 to capture extraordinary gains from soaring oil prices. They disappeared in 2024 but came back this March after oil prices shot up again due to the U.S.-Israel conflict with Iran.
India tweaks these duties every two weeks based on world market shifts, and this latest cut should help Indian fuel exports stay competitive, even as global prices keep bouncing around.