India Increases Windfall Tax on Diesel and ATF Exports to Rs 14 and Rs 12.5 per Litre

The Indian government has adjusted the Special Additional Excise Duty on select fuel exports effective June 16, 2026, with diesel exports now taxed at Rs 14 per litre and aviation turbine fuel at Rs 12.5 per litre. These fortnightly revisions aim to balance refinery profitability against domestic supply security. No alterations have been made to retail prices for petrol, diesel, or ATF within India.

India Increases Windfall Tax on Diesel and ATF Exports to Rs 14 and Rs 12.5 per Litre

New Delhi, India – June 16, 2026 — The Finance Ministry has notified higher export duties on diesel and aviation turbine fuel, raising the Special Additional Excise Duty to Rs 14 per litre for diesel and Rs 12.5 per litre for ATF. Petrol export duty remains fixed at Rs 1.5 per litre. These changes take effect immediately and will be reviewed again in two weeks.

Updated Export Duty Rates Effective June 16, 2026

The revised SAED stands at Rs 14 per litre on diesel exports, an increase of Rs 0.5 from the prior Rs 13.5 per litre. ATF exports now carry Rs 12.5 per litre, up Rs 3 from Rs 9.5 per litre. Domestic retail prices for petrol, diesel, and ATF across Indian cities remain unchanged under the current notification.

Historical Adjustments Since 2022

Windfall taxation on fuel exports began on July 1, 2022, at Rs 6 per litre for petrol and ATF and Rs 13 per litre for diesel. The levy underwent more than 30 revisions through December 2024 before temporary withdrawal. It was re-imposed on March 26, 2026, at Rs 21.5 per litre for diesel and Rs 29.5 per litre for ATF following Middle East supply disruptions, then adjusted to Rs 55.5 and Rs 42 per litre on April 11 before partial reductions on May 16.

Policy Objectives for Domestic Energy Security

The duty targets supernormal profits earned by export-oriented refiners including Reliance Industries and public sector units. By raising export costs, the measure discourages overseas shipments when global prices exceed domestic benchmarks, thereby protecting fuel availability for Indian consumers and industries. The tax applies exclusively to exports and leaves internal retail pricing unaffected.

Implications for Refiners and Energy Markets

Reliance Industries and other private and public sector refiners with significant export volumes from facilities across Gujarat and other coastal states face higher per-litre costs on diesel and ATF shipments. The fortnightly review mechanism allows rapid response to price differentials, supporting stable domestic supply chains that underpin transportation, aviation, and manufacturing sectors nationwide.

The Bottom Line

With diesel export duty now at Rs 14 per litre and ATF at Rs 12.5 per litre from June 16, 2026, the government continues its calibrated approach to capturing excess refinery margins while maintaining unchanged retail prices for Indian households and businesses. The policy has been adjusted more than 30 times since its 2022 introduction, demonstrating ongoing responsiveness to global crude volatility.

— By Dr. Raj Patel, Staff Writer