India hiked windfall gains tax on exports of diesel and aviation turbine fuel (ATF) effective June 16, according to a Finance Ministry notification reported by PTI on June 15, 2026. The special additional excise duty (SAED) on diesel exports was raised to Rs 14 per litre from Rs 13.5 per litre, while the SAED on ATF exports increased to Rs 12.5 per litre from Rs 9.5 per litre. The levy on petrol exports remains unchanged at Rs 1.5 per litre.
New Duty Rates on Diesel and ATF Exports
The government revised the windfall tax rates for the fortnight beginning June 16. The following table compares the old and new SAED rates on exports:
| Product | Previous Rate (Rs/litre) | New Rate (Rs/litre) | Change |
|---|---|---|---|
| Diesel | 13.5 | 14.0 | +0.5 |
| ATF | 9.5 | 12.5 | +3.0 |
| Petrol | 1.5 | 1.5 | No change |
According to the PTI report, there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.
Petrol Levy Unchanged
The export duty on petrol remains at Rs 1.5 per litre. The government had initially imposed export duty on diesel and ATF on March 26, 2026, amid escalating tensions in West Asia caused by the US-Israel attack on Iran, followed by sweeping retaliation. On May 16, 2026, it levied export duty on petrol as well. The rates are revised every fortnight.
Background and Purpose of Windfall Tax
The windfall tax was introduced to increase domestic availability of fuel during the West Asia crisis. The government’s move aims to prevent exporters from taking undue advantage of price differences, as global crude oil prices had risen since the beginning of the war. The tax is designed to disincentivise exports and ensure sufficient supply in the domestic market.
The windfall tax was levied to increase domestic availability of the fuel amid the war in West Asia.
The Finance Ministry notification confirmed the duty hikes will be effective from June 16. The fortnightly revision mechanism allows the government to adjust rates in response to changing market conditions and geopolitical developments.
Implications for Trade
For importers and exporters of petroleum products, the higher SAED on diesel and ATF increases the cost of exporting these fuels from India. The unchanged petrol levy provides some stability for that product. The policy reflects the government’s continued focus on domestic energy security amid ongoing geopolitical instability in West Asia. The government’s fortnightly review cycle means rates could change again in two weeks. Trade professionals should monitor official notifications for further adjustments.
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