# Centre Cuts Windfall Levy on Diesel and Jet Fuel Exports, Hikes Petrol Export Duty as New Rates Kick In From July 1

> The central government has sharply cut the windfall tax on diesel and aviation fuel exports while raising the duty on petrol exports. The revised rates take effect from July 1, 2026.

**Type:** article · **Category:** Business · **Published:** 2026-06-30 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/business/videsha-bheje-jane-vale-dijala-aura-atf-hue-saste-petrola-eksaporta-para-sarakara-ne-kasa-shiknja-1-julai-se-naya-ganita-3726 · **Language:** English
**Tags:** windfall tax, diesel export, ATF duty, petrol export, Finance Ministry, SAED, crude oil, oil companies

With crude oil prices easing and global markets staying choppy, the central government has taken a significant decision affecting the country's oil companies. Through a fresh official notification issued on Tuesday, it has sharply reduced the windfall tax charged on exports of diesel and aviation turbine fuel (ATF). At the same time, to make sure there is no shortage of fuel within the country, the duty on petrol exports has been raised. According to the Finance Ministry, these new rates will come into force from July 1, 2026.

 As part of its fortnightly review, the Finance Ministry has made the following changes to the Special Additional Excise Duty (SAED) structure:

  - **Diesel exports:** The tax on shipping diesel abroad has been lowered from ₹14 per litre to ₹8.5 per litre.
 - **Aviation fuel (ATF):** The duty on ATF exports has been cut from ₹12.5 per litre to ₹7.5 per litre.
 - **Petrol exports:** In contrast, the duty on petrol exports has been pushed up from ₹1.5 per litre to ₹4 per litre.

 

## Why the government made this move
 Amid the ongoing geopolitical tension and uncertainty in West Asia, the government wants to keep enough petrol and diesel available in the domestic market. The reasoning is simple: when global crude prices climb steeply, oil firms tend to ship fuel overseas instead of selling it at home, pocketing outsized profits in the process. This revised duty structure is meant to discourage companies from exporting excessively, so that the country does not run short of fuel. The government has also clarified that there is no change to the existing duty rates on petrol and diesel meant for domestic consumption, meaning ordinary consumers will feel no pinch.

 

## Special relief for these countries
 The government has also extended a major concession to friendly nations under this policy. When the export levy was first imposed in March, fuel sent by public sector oil companies (PSUs) to Nepal, Bhutan, Bangladesh and Sri Lanka was kept outside the tax net. Now, widening the scope of that exemption, Mauritius and the Maldives have also been added to the list.

## What this means for you
- **For ordinary consumers:** Duty on petrol and diesel meant for domestic use is unchanged, so this decision will not directly raise the prices you pay at the pump.
- **Fuel availability:** The higher duty on petrol exports nudges companies to keep more fuel within the country, lowering the risk of a shortage.

## Questions & Answers

### 1. When do the new tax rates take effect?
The revised rates will come into force from July 1, 2026.

### 2. How much has the tax on diesel exports been cut?
The tax on diesel exports has been reduced from ₹14 per litre to ₹8.5 per litre.

### 3. What is the new duty on ATF and petrol exports?
The duty on ATF has been lowered from ₹12.5 to ₹7.5 per litre, while petrol export duty has been raised from ₹1.5 to ₹4 per litre.

### 4. Will domestic petrol and diesel get costlier?
No, there is no change to the existing duty rates on petrol and diesel meant for domestic consumption.

### 5. Why did the government raise the petrol export duty?
To discourage companies from exporting too much and to ensure enough fuel remains available within the country.

### 6. Which countries are exempt from this tax?
Nepal, Bhutan, Bangladesh and Sri Lanka were already exempt, and Mauritius and the Maldives have now also been added to the list.

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