Govt hikes windfall tax on diesel exports to Rs 25.5 per litre, increases export duty on ATF, petrol also

NEW DELHI: The government has raised the special additional excise duty (SAED) on exports of petrol, diesel and aviation turbine fuel (ATF) amid continued volatility in global crude oil prices due to the situation in West Asia.

According to an official order, the government increased the export duty on petrol exports by Rs 1 per litre to Rs 3.5 per litre from Rs 2.5 per litre with effect from August 3. The windfall tax on diesel exports has also been raised to Rs 25.5 per litre from Rs 15.5 per litre. For aviation turbine fuel (ATF), or jet fuel, the government hiked the windfall tax on exports to Rs 22 per litre from Rs 14.5 per litre.

The move aims to discourage exports and ensure greater availability of petrol, diesel and ATF for domestic consumption. The latest revision follows last month’s decision by the Centre to increase windfall taxes on diesel and ATF exports while reducing the levy on petrol exports. These higher global oil prices were triggered by the escalating US-Iran conflict that improved margins.

As per a Finance Ministry notification issued on July 16, the export duty on diesel was raised to Rs 15.5 per litre from Rs 8.5 per litre, while the levy on ATF exports was increased to Rs 14.5 per litre from Rs 7.5 per litre. During the same revision, the government reduced the export duty on petrol to Rs 2.5 per litre from Rs 4 per litre.

In the previous revision, the Special Additional Excise Duty (SAED) on petrol exports had been increased to Rs 4 per litre from Rs 1.5 per litre. At the same time, the export duty on diesel was reduced to Rs 8.5 per litre from Rs 14 per litre, while the levy on ATF exports was cut to Rs 7.5 per litre from Rs 12.5 per litre.

On April 30, according to notifications issued by the Ministry of Finance, the export duty on diesel was fixed at Rs 23 per litre under Special Additional Excise Duty (SAED). The Road and Infrastructure Cess (RIC) on diesel was kept at Nil. For ATF, the government set SAED at Rs 33 per litre. The rate of duty on exports of petrol continues to remain Nil.

Earlier, on June 30, the export duty on petrol was set at Rs 4 per litre and on diesel at Rs 8.5 per litre. In both cases, the Road and Infrastructure Cess (RIC) remains nil, so the SAED makes up the entire export levy. Notification No. 37/2026 fixes the SAED on ATF exports at Rs 7.5 per litre. (ANI)