India Cuts Windfall Taxes on Fuel Exports

India has reduced windfall taxes on exports of petrol, diesel, and aviation turbine fuel effective Saturday, according to government notifications. The special additional excise duty on diesel exports has been cut to 24 rupees per liter from 25.5 rupees, while the levy on aviation turbine fuel exports has been lowered to 19.5 rupees per liter from 22 rupees. The export duty on petrol has been eliminated entirely, dropping to nil from 3.5 rupees per liter.

The revised rates were announced in notifications issued by the Finance Ministry and take effect for the fortnight beginning August 15. Officials stated the changes are part of a routine biweekly review process, with export levies adjusted based on average international prices of crude oil and petroleum products since the last assessment. The review comes amid volatile global energy markets, with ongoing conflict in West Asia, including tensions linked to Iran, continuing to impact crude and refined fuel prices.

The windfall tax, formally a special additional excise duty, was first introduced in July 2022 to capture extraordinary gains from soaring oil prices. It was later abolished before being reinstated in March 2026...