The Central government has raised the windfall tax on diesel and aviation turbine fuel (ATF) exports and cut the levy on petrol exports to zero, with the new rates effective from October 31, 2026. A Finance Ministry notification set the rates for the next fortnight. Existing duties on petrol and diesel supplied for domestic consumption remain unchanged.
New Windfall Tax Rates on Diesel, ATF and Petrol Exports
The levy is a special additional excise duty (SAED) combined with a road and infrastructure cess on exports of petroleum products. The diesel export duty rose to ₹11.5 per litre from ₹8.5 per litre, an increase of ₹3 per litre, or about 35%. The ATF duty rose to ₹11 per litre from ₹10.5 per litre. The petrol export duty was withdrawn, down from ₹2.5 per litre.
| Product | Previous fortnight (₹ per litre) | From October 31 (₹ per litre) |
|---|---|---|
| Diesel | 8.5 | 11.5 |
| Aviation turbine fuel (ATF) | 10.5 | 11 |
| Petrol | 2.5 | Nil |
Why the Government Taxes Fuel Exports
The government imposed export duties on diesel and ATF on March 27, 2026, amid escalating tensions in West Asia, and brought petrol exports under the levy from May 16. The duties are revised every fortnight to match prevailing conditions.
The measures were introduced to discourage excessive exports and to keep enough petroleum products available in the domestic market. They were also meant to prevent exporters from benefiting disproportionately from the gap between domestic and international prices after crude oil prices rose following the outbreak of the conflict.
How the Windfall Tax Has Moved Since August
The rates have changed sharply from one fortnight to the next. In mid-August, the diesel export duty was ₹24 per litre and the ATF duty ₹19.50 per litre, while petrol was exempt. The latest revision keeps the diesel duty well below that level, though it has risen from the previous fortnight.
| Period | Diesel (₹ per litre) | ATF (₹ per litre) | Petrol (₹ per litre) |
|---|---|---|---|
| From August 15 | 24 | 19.50 | Nil |
| Previous fortnight | 8.5 | 10.5 | 2.5 |
| From October 31 | 11.5 | 11 | Nil |
The petrol levy has moved up and down in 2026. It was ₹3.50 per litre from August 3, was withdrawn from August 15, was reintroduced at ₹1.50 from September 1, was cut to ₹0.50 from September 16, stood at ₹2.50 in the previous fortnight, and has now returned to nil.
What the Duty Means in Rupees
A per-litre duty adds up quickly on large shipments. As an illustration only, on 1 lakh litres of diesel exported, a duty of ₹11.5 per litre comes to ₹11.5 lakh, against ₹8.5 lakh at the previous rate. This is a calculation from the notified rates and does not represent any company’s actual shipment.
Key dates in the levy’s history:
- March 27, 2026: export duties imposed on diesel and ATF amid West Asia tensions.
- May 16, 2026: petrol exports brought under the levy.
- Every fortnight since: rates revised by Finance Ministry notification.
- October 31, 2026: diesel and ATF duties raised, petrol duty cut to nil.
Impact on Refiners and Reliance’s Quarterly Results
The duty is relevant to refiners that export diesel and ATF. In its September quarter results announced on October 30, Reliance Industries reported that its oil-to-chemicals EBITDA rose 68% to ₹25,203 crore on record fuel cracks. The company also said earnings growth was constrained by continued costs related to the special additional excise duty.
The export levy is a cost on exported fuel, which is how it can weigh on refiners’ margins. Reliance shares rose 8.2% in early trade on November 2 after the results. The duty rates for the coming fortnight were notified a day after the results were announced.
What Stays the Same and What to Track
The notification does not change the domestic duty rates on petrol and diesel. It applies only to exports and only for the fortnight that began on October 31. A new notification is expected at the end of the period, and the rates can rise, fall or stay unchanged.
- Applies to: exports of diesel, ATF and petrol.
- Effective from: October 31, 2026, for the next fortnight.
- Unchanged: duties on fuel supplied for domestic consumption.
- Next step: a fresh Finance Ministry notification at the end of the fortnight.
Investors who follow oil and gas companies can keep track of these notifications alongside company results. Anyone who wants to hold such shares needs a demat and trading account, and an investing platform with access to NSE and BSE can be used to follow prices and company announcements.
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