India Adjusts Windfall Tax on Fuel Exports: Gasoline Raised, Diesel Lowered

en.Wedoany.com Reported - On October 15, the Indian government issued an order adjusting the windfall tax on refined fuel exports. Effective October 16, the gasoline export tax will be raised from 0.5 rupees per liter to 2.5 rupees per liter, while the diesel export tax will be lowered from 16 rupees per liter to 8.5 rupees per liter. The gasoline tax rate was increased fourfold, and the diesel tax rate was reduced by approximately 46.9%, with the two refined fuel products subject to tax rate adjustments in opposite directions.

This policy was announced by the Central Board of Indirect Taxes and Customs of India. The aviation fuel export tax rate remains unchanged, and the current consumption tax rates on gasoline and diesel sold domestically are not affected by this adjustment. This adjustment applies to relevant fuel export operations and does not involve domestic refined fuel consumption tax policy.

India reintroduced the windfall tax on fuel exports in March 2026. Under the current mechanism, the relevant tax rates are reviewed every two weeks, based on changes in the average international crude oil price and petroleum product prices over the past 15 days.