Center hikes windfall tax on petrol, diesel exports, cuts jet fuel duty | Today’s news
The government on Tuesday increased the unexpected tax on the export of petrol and diesel by ₹1.5 a ₹1 and reduced it by 50 paise per liter of jet fuel exports for the next fortnight.
The Special Additional Excise Duty (SAED), often called a windfall tax, aims to discourage the export of petrochemical products and stabilize domestic supplies, as well as capture a share of the windfall profits of oil companies.
With the latest revision, the total export duty on diesel remains the same ₹25 per liter and petrol at ₹1.5 per liter. SAED on Export of Aviation Turbine Fuel (ATF) will be export ₹19 per liter for the next fortnight, a gazette notification said.
The rates are revised every fortnight based on the average international prices of crude oil, petrol, diesel and ATF in the period since the last revision.
Over the past two weeks, oil prices have increased by roughly 4%. By 8:30 p.m., the November Brent crude contract on the Intercontinental Exchange was trading at $92.11 a barrel, up 1.89% from its previous close.
Charge led by war
When the government on March 27 last imposed a windfall with diesel export duties of Rs ₹21.5 liters and on ATF at ₹29.5 liters, revenue collection estimates approx ₹1500 crores in two weeks. These charges were first imposed in 2022 during the height of the Russo-Ukrainian war and were withdrawn in 2024.
The war in West Asia and the closure of the Strait of Hormuz have reduced global oil supplies and raised prices. Before the war, the strait was a key channel for about 20% of global oil and gas supplies. The blockade of the strait – first imposed by Iran after the war began in late February, followed by a US naval blockade in April – has severely disrupted global energy flows.
With the fourth largest refining capacity in the world at 258 million tonnes, India is also witnessing record growth in domestic consumption of petroleum products. In FY26, India’s consumption of petroleum products peaked at 243 million tonnes.
