Government's new tax decision
The Indian government has increased the windfall tax on export of petrol by Rs 2 per liter, while it has been reduced by Rs 7.50 per liter on diesel.
According to the notification issued by the Central Board of Indirect Taxes and Customs (CBIC), now the excise duty on exported petrol will be Rs 2.50 per liter, which was earlier 50 paise.
At the same time, excise duty on exported diesel has been reduced from Rs 16 to Rs 8.50 per liter. Duty on aircraft fuel has been kept constant at Rs 10.50 per litre.
These excise duties are known as windfall taxes, which aim to prevent profiteering due to sudden increase in prices in the international market.
The government also said that from now on these taxes will be reviewed every fortnight, whereas earlier it used to be every month.
The windfall tax was re-introduced from 27 March 2026 during the Middle East crisis, after there had been no tax for more than two years before that.