With global crude prices still at higher level, Finance Ministry on Saturday hiked the windfall gain tax on export bound diesel and aviation turbine fuel (ATF) by over 158 per cent and 42 per cent, respectively with immediate effect. This is the first revision after levy reimposed on March 26.

According to set of notifications, the windfall levy on diesel would now be ₹55.5 a litre as against ₹21.5 a litre. Similarly export bound jet fuel will attract levy of ₹42 a litre as against ₹29.5 a litre. Export duty on petrol continues to remain Nil. Government officials made it clear that revision is not about boosting revenue for the Government, “it is more about not allowing exporters to take undue advantage due to price differences.”

On March 26, Finance Minister Nirmala Sitharaman had said that the levy on diesel and ATF export had been raised to ensure that the fuel is prioritised for use in the domestic sector. “This will ensure adequate availability of these products for domestic consumption,” she had said.

These changes have come at a time when crude prices after going over $120 a barrel has slipped to around $95-96 a barrel. At the same time product prices are still high. With Indian refineries having high capacity and exporting petroleum products, government has reworked the levy. This will ensure adequate availability of these products for domestic consumption.

Published on April 11, 2026