The Central Government has completely abolished the tax on export of petrol. Windfall tax on export of diesel has been increased by Rs 3. The export duty on ATF has also been increased by 50 paise per litre. The new rates will be applicable for the next 15 days from October 31.
The Central Government has made changes in the special duties imposed on the export of petroleum products. The duty on export of petrol has been reduced to zero, while the duty on export of diesel and aviation fuel (ATF) has been increased.
According to the notification of the Finance Ministry, Special Additional Excise Duty (SAED) on diesel will now be Rs 11.50 per liter. SAED on export of ATF has been fixed at Rs 11 per liter. Both SAED and Road and Infrastructure Cess (RIC) on export of petrol will be zero. That means, tax on export of petrol has been completely abolished.
How much tax is there on petrol, diesel and ATF now?
Till now Rs 2.50/litre was being charged on petrol, which has been abolished. Whereas diesel will now be charged Rs 11.50/litre instead of Rs 8.50/litre. That means it has been increased by Rs 3. The duty on ATF has also been increased by 50 paise from Rs 10.50/litre to Rs 11/litre.
See chart below.
The new rates will be applicable for the next fortnight from October 31, 2026. The government reviews these charges every 15 days based on the prices of crude oil and petroleum products in the international market.
What is windfall tax?
Windfall tax is a tax that is imposed on unexpected additional profits made by companies. Export of petroleum products may become more profitable if there is a sudden rise in international oil prices. In such a situation, the government earns a part of this additional income by imposing duty on exports and tries to maintain supply in the domestic market.
Why did the government change the export duty?
The government had implemented SAED and RIC on the export of petrol, diesel and ATF from March 27, 2026. Its objective was to maintain the availability of petroleum products in the domestic market amid the West Asia crisis and to discourage exports.
According to the Finance Ministry, the duty rates are decided on the basis of average prices of crude oil, petrol, diesel and ATF in the international market after previous review. The last review came into effect from 16 October 2026.
No impact on domestic petrol and diesel prices
The Finance Ministry has clarified that due to the change in export duty, there is no change in the existing central excise duty on petrol and diesel released for domestic consumption. Therefore, this notification will not have a direct impact on the retail prices of petrol and diesel in the domestic market.
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Source: ndtv.in
