The Indian government has increased the windfall tax, or Special Additional Excise Duty (SAED), on exports of petrol, diesel and aviation turbine fuel (ATF), with the revised rates taking effect from August 3. The move follows the government’s latest fortnightly review of export levies aimed at balancing domestic fuel availability with changing global crude oil market conditions.
Under the revised structure, the windfall tax on petrol exports has been raised to ₹3.5 per litre from ₹2.5 per litre. The levy on diesel exports has been sharply increased to ₹24 per litre from ₹15.5 per litre, while the duty on ATF exports has been hiked to ₹22 per litre from ₹14.5 per litre. According to some official notifications reported by PTI, the effective export duty on diesel works out to ₹25.5 per litre after including applicable components under the tax structure.
The revision comes despite a recent easing in international crude oil prices after the United States signalled a possible resumption of diplomatic talks with Iran. However, New Delhi continues to closely monitor energy markets, where geopolitical tensions in West Asia have kept price volatility elevated in recent months.
India had originally introduced windfall taxes in July 2022 to capture extraordinary profits earned by refiners during periods of exceptionally high global oil prices. Although the levy was withdrawn in December 2024 as market conditions stabilised, it was reintroduced in March 2026 following renewed geopolitical disruptions and a sharp rise in crude prices linked to the West Asia conflict.
The government reviews these export duties every fortnight, adjusting them in line with movements in international crude prices, refining margins and domestic fuel supply requirements. The latest increase is expected to discourage excessive fuel exports, ensure adequate domestic availability and provide additional revenue while global energy markets remain volatile.