India Cuts Windfall Tax on Gasoline, Diesel, and Jet Fuel Exports

en.Wedoany.com Reported - On September 16, the Indian government cut the windfall tax on exports of gasoline, diesel, and aviation turbine fuel (ATF), effective immediately. The diesel export tax was reduced from 25 rupees per liter to 20 rupees per liter, the gasoline export tax from 1.5 rupees per liter to 0.5 rupees per liter, and the aviation turbine fuel export tax from 19 rupees per liter to 15 rupees per liter. Based on the magnitude of the adjustments, the export taxes on the three refined products fell by 20%, approximately 66.7%, and approximately 21.1%, respectively.

This round of adjustments covers India's refined product export segment, with diesel remaining the variety with the highest per-unit export tax burden among the three fuels. India currently adjusts the relevant export tax rates periodically in line with changes in international crude oil and refined product prices; the rates are not fixed over the long term. In a round of adjustments in mid-August, the diesel export tax was reduced from 25.5 rupees per liter to 24 rupees, aviation turbine fuel from 22 rupees to 19.5 rupees, and the gasoline export tax was at one point cut to zero.

India first imposed a windfall tax on exports of certain petroleum products and domestic crude oil production in July 2022, and subsequently scrapped the related measures in 2024. In March 2026, after international oil prices rose sharply, India reintroduced the relevant levy on refined product exports, setting the diesel export tax at 21.5 rupees per liter and aviation turbine fuel at 29.5 rupees per liter at that time.

The rates have since undergone multiple rounds of adjustment. From May 16, India imposed a tax of 3 rupees per liter on gasoline exports for the first time in this policy cycle, while cutting the diesel export tax from 23 rupees per liter to 16.5 rupees and aviation turbine fuel from 33 rupees to 16 rupees; from June 1, the export taxes on gasoline, diesel, and aviation turbine fuel were further adjusted to 1.5 rupees, 13.5 rupees, and 9.5 rupees per liter, respectively.

As of the latest adjustment on September 16, India continues to apply differentiated tax rates to exports of diesel, gasoline, and aviation turbine fuel. Among them, diesel stands at 20 rupees per liter and aviation turbine fuel at 15 rupees per liter, noticeably higher than early June levels; the gasoline rate, meanwhile, was cut to 0.5 rupees per liter. This government order adjusts the tax burden at the export stage, with the new rates taking effect immediately upon issuance.