The Central Government has announced a revision in the windfall tax structure on fuel exports, with the new rates set to come into effect from June 1, 2026. The move comes as part of the government’s fortnightly review mechanism that adjusts export duties based on changes in global crude oil and fuel prices. The revised tax rates are expected to impact major oil refiners and exporters operating in the country.
According to the latest notification, export duty on petrol has been fixed at ₹1.5 per litre, while diesel exports will attract a levy of ₹13.5 per litre. Aviation Turbine Fuel (ATF) exports will be subject to a duty of ₹9.5 per litre. The government clarified that these levies are being imposed under the Special Additional Excise Duty (SAED) framework and will apply for the fortnight beginning June 1.
The revised rates mark a significant policy adjustment, especially since duties on diesel and ATF exports had remained at zero during several recent review cycles. Officials indicated that the latest revision reflects changing international market conditions and evolving refining margins in the global energy sector.
The windfall tax mechanism was first introduced by India in July 2022 when global crude oil prices surged sharply. The objective was to ensure adequate domestic fuel availability and prevent refiners from excessively prioritizing exports during periods of exceptionally high international margins. Since then, the tax rates have been revised multiple times depending on fluctuations in global energy markets.
Industry experts believe the latest revision could affect large private refiners such as Reliance Industries as well as public-sector energy companies involved in fuel exports. The tax is linked to refining “cracks” or profit margins earned on overseas shipments, making it highly sensitive to international crude and product prices.
Despite the export duty changes, the government has maintained that there will be no change in the excise duty structure for petrol and diesel sold in the domestic market. This means consumers are unlikely to see any immediate impact on retail fuel prices solely because of the revised export levies.
The decision comes at a time when global energy markets remain volatile due to geopolitical tensions and concerns surrounding the Strait of Hormuz, a critical route for international oil shipments. Recent government assessments have highlighted that any disruption in the region could have significant implications for India’s energy security and inflation outlook.
Energy analysts say the revised windfall tax signals the government’s intent to closely monitor export profitability while balancing domestic fuel supply requirements. As global crude prices continue to fluctuate, further revisions to the tax structure are likely in the coming weeks under the existing review framework.
