India has eliminated the export duty on petrol and reduced the windfall taxes on diesel and aviation turbine fuel (ATF), according to multiple reports published on Saturday. The changes took effect on August 15, as reported by The Hindu, Reuters, and other outlets.
The government set the petrol export levy to nil, while retaining but lowering the duties on diesel and ATF exports, The Times of India reported. ThePrint described the move as a cut to the windfall gains tax on all three fuels. Reuters similarly reported that India reduced the windfall tax on exports of petrol, diesel, and aviation fuel.
The export duties were part of a windfall tax regime introduced in 2022, when global crude prices spiked following geopolitical disruptions. The levies were designed to capture excess profits from fuel exporters during periods of high international refining margins. The latest adjustment reflects a softening in those margins, according to the reporting from The Hindu and Telegraph India.
The decision comes as global fuel demand and refining economics have shifted, making the earlier tax rates less appropriate for current market conditions. The reduction applies to exports only and does not change domestic fuel pricing, based on the information available.
What to watch next: Whether the government further adjusts the remaining diesel and ATF levies in the coming months, and how the move affects export volumes from Indian refiners.
