The central government reduced the Windfall Tax on the export of petrol, diesel and ATF on 16 September 2026. The decision will reduce the cost of oil exporters, but will not affect the prices of petrol and diesel in the domestic market.
Business: The Central Government has cut the Windfall Tax applicable on the export of petrol, diesel and Aviation Turbine Fuel (ATF) on the night of 16 September 2026. Duty on petrol has been reduced from ₹1.50 to ₹0.50 and on diesel from ₹25 to ₹20 per litre. However, there has been no change in the existing excise duty of petrol and diesel for domestic customers.
Change in export tax of petrol and diesel
According to the order of the Finance Ministry, the new tax rates have been implemented with immediate effect from the night of 16 September 2026. Special Additional Excise Duty (SAED) on export of petrol has been reduced from ₹1.50 to ₹0.50 per litre. That means exporters will get a relief of ₹1 per litre.
The total tax on export of diesel has been reduced from ₹25 to ₹20 per litre. Earlier it included SAED along with ₹1 per liter Road and Infrastructure Cess (RIC). Under the new decision, RIC has been completely abolished.
Windfall tax on export of ATF has also been reduced. Now the tax on export of aviation turbine fuel has been fixed at ₹15 per litre.
What will be the impact on domestic petrol and diesel prices?
This reduction in Windfall Tax is applicable for exports. Therefore, customers purchasing petrol and diesel in the domestic market will not get any direct relief from this decision.
The government has not made any changes in the existing excise duty applicable for sale in the country. In such a situation, there is no hope of reduction in the prices of petrol or diesel at petrol pumps only on the basis of this decision.
Why is the decision important for oil companies?
Reduction in export duty may reduce the cost of companies selling refined petroleum products in India abroad. This may have a positive impact on the margins of their export business.
Oil sector companies like Reliance, Nayara Energy and ONGC may be affected by this change, especially those businesses that involve export of refined petroleum products.
Petrol-diesel rates in your city
Petrol in Delhi is ₹102.12 and diesel is ₹95.62 per liter. Petrol in Mumbai is ₹104.21 and diesel is ₹92.15. Petrol in Kolkata is ₹104.95 and diesel is ₹91.82. Petrol in Chennai is ₹100.75 and diesel is ₹92.34 per liter.