The windfall tax on the export of petrol has been reduced from Rs 3.5 to zero. The duty on ATF has also been reduced from Rs 22 to Rs 19.5 per litre.
Govt reduced windfall tax on petrol-diesel: India has reduced the windfall tax on exports of petrol, diesel and aviation fuel (ATF). According to the government order, the new rates will come into force from August 15, 2026. The duty on export of diesel has been reduced from Rs 25.5 to Rs 24 per litre.
A windfall tax is generally imposed when companies make higher-than-normal profits due to extraordinary increases in international prices. The windfall tax on the export of petrol has been reduced from Rs 3.5 to zero. The duty on ATF has also been reduced from Rs 22 to Rs 19.5 per litre. The revision in rates reflects the government’s efforts to ease the tax burden on exports in view of prevailing international fuel prices and refining margins.
In Delhi, petrol is around Rs 102.12 per liter and diesel around Rs 95.20 per litre. In Mumbai, petrol is Rs 111.21 and diesel is Rs 97.83 per litre.
The domestic price of petrol-diesel depends on international crude oil prices, rupee-dollar exchange rates, refining costs and central and state taxes. Therefore, it is not necessary to immediately reduce the price of petrol-diesel just because of windfall tax.
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