Modi government increased tax on petrol, diesel and ATF, know how much it will affect your pocket.

India Hikes Windfall Tax: The growing military tension and fear of war between the US and Iran in the Middle East has created panic in the global energy market. Amidst the sharp rise in international prices of crude oil, the Government of India, taking an important economic decision, has issued an order to significantly increase the windfall tax on the export of diesel and aviation turbine fuel (ATF).

How much was the tax increase?

According to the report, the central government has directly increased the windfall tax on diesel exports from Rs 8.5 per liter to Rs 15.5 per liter. Similarly, the tax on aviation fuel i.e. ATF has been increased from Rs 7.5 per liter to Rs 14.5 per liter.

These increased tax rates have become effective from Thursday, July 16, 2026. However, exporters have also got relief on one front. The government has reduced the windfall tax on export of petrol by Rs 4 per litre.

Why was windfall tax increased?

The government reviews the windfall tax from time to time based on global conditions and crude oil prices. At present, due to the intensification of war between America and Iran, there is huge volatility in the prices of crude oil. Earlier in July, when the situation had calmed down a bit, the government had increased the tax on petrol and reduced the tax on diesel-ATF, but now the situation has reversed. The main objective of this tax is to ensure adequate supply of fuel in the domestic market and to curb taking advantage of international prices by oil companies.

Will it affect your pocket?

It is a matter of relief for the common consumers that this increase in windfall tax will not have any impact on the prices of oil available at petrol pumps. This tax applies only to oil refining companies and the exports made by them. Therefore, the prices of petrol and diesel for the common man will remain stable for the time being.

Also read:- Russia faces shortage of petrol due to Ukrainian attacks, Putin seeks help from India, is Moscow trapped in oil crisis?

Today’s prices in metropolitan cities of the country

Fuel prices remained stable in major cities of the country on July 16, 2026. In the national capital Delhi, petrol is being sold at Rs 102.12 and diesel at Rs 95.20 per liter. Petrol price in Mumbai is ₹111.21 per liter and diesel is ₹97.83 per liter. Whereas petrol is available at the rate of Rs 113.48 per liter in Kolkata and Rs 107.78 per liter in Chennai.