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regular-article-logo Tuesday, 16 June 2026

Centre raises windfall tax on diesel, ATF exports; petrol duty unchanged

The finance ministry in a notification said the duty hikes will be effective from June 16

PTI Published 16.06.26, 10:56 AM
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The government has increased the windfall gains tax on exports of diesel and aviation turbine fuel (ATF) for the fortnight beginning June 16, while retaining the existing levy on petrol exports.

According to a Finance Ministry notification issued on Monday, the rate of special additional excise duty (SAED) on diesel exports has been raised to Rs 14 per litre from Rs 13.5 per litre. The SAED on ATF exports has been increased to Rs 12.5 per litre from Rs 9.5 per litre.

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There is no change in the duty on petrol exports, which will continue at Rs 1.5 per litre. The revised rates will come into effect from June 16.

The government has also left unchanged the existing duty rates on petrol and diesel meant for domestic consumption.

India first imposed export duties on diesel and ATF on March 26 amid escalating tensions in West Asia following the US-Israel attack on Iran and the subsequent retaliation. The rates have since been reviewed every fortnight. Export duty on petrol was introduced on May 16.

The windfall tax was levied to boost domestic availability of fuel during the conflict-driven disruption in global energy markets.

The move is aimed at preventing exporters from benefiting excessively from higher international prices, as crude oil rates have risen since the outbreak of the war.

The tax is also intended to ensure adequate domestic supplies of petroleum products by discouraging exports amid the continuing West Asia crisis.

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