Windfall gains tax cut: Excise duty on diesel exports down to Rs 23/litre, ATF exports to Rs 33/litre

The windfall taxation connected exports of diesel and aviation turbine substance (ATF) has been lowered effectual May 1, 2026. The excise work connected petrol and diesel sold successful the home marketplace volition stay unchanged.

The levy connected diesel exports has been reduced to Rs 23 per litre from Rs 55.5 per litre, portion the work connected ATF exports has been chopped to Rs 33 per litre from the earlier Rs 42 per litre.In a statement, the Finance Ministry besides announced that the roadworthy and infrastructure cess connected diesel exports volition beryllium waived for the adjacent fortnight starting May 1. Meanwhile, the export work connected petrol volition proceed to stay astatine zero.Earlier, connected March 26, the authorities had imposed export duties of Rs 21.50 per litre connected diesel and Rs 29.5 per litre connected ATF.

These rates were subsequently accrued during a reappraisal connected April 11 to Rs 55.5 per litre for diesel and Rs 42 per litre for ATF.The windfall taxation was introduced to guarantee that capable home supplies of petroleum products stay disposable amid proviso disruptions arising from the struggle involving the United States, Israel and Iran. It was besides intended to forestall exporters from profiting excessively from the widening spread betwixt home and planetary substance prices arsenic planetary crude markets rallied sharply.

According to the ministry, the export work model is aimed astatine discouraging excessive overseas shipments during the ongoing West Asia crisis, thereby safeguarding home substance availability.Following subject strikes by the United States and Israel connected Iran connected February 28, Tehran responded with extended retaliation, escalating tensions crossed the Middle East. India’s lipid proviso done the Strait of Hormuz remains affected, but its diversified procurement handbasket and the availability of millions of barrels of Russian crude connected h2o person helped easiness the proviso bottlenecks for now.Since the outbreak of the conflict, crude lipid prices person climbed steeply, rising from astir $73 a tube to a four-year precocious of $126 a barrel.