Windfall Tax Hike: Windfall tax increased on export of diesel and aviation fuel (ATF) amid global energy crisis; New rates applicable from today


Amidst high energy prices and continuous instability globally, the Central Government has taken a major step to keep the country’s fuel market balanced. The government has increased the special excise duty on the export of diesel and ATF (Aviation Turbine Fuel).

This new decision of the government today i.e. 16 June 2026 Has become effective in the entire country. Meanwhile, it is a matter of relief for domestic consumers that the government has not made any changes in the export duties on petrol and has maintained it at the same level as before. These new rates have been implemented across the country after the official notification issued by the Department of Revenue under the Ministry of Finance.

How much tax increased on diesel and aviation fuel (ATF)?

Keeping in view the changing equations of the international market and crude oil prices, the government has made the following amendments in the tax structure:

  • Export duty on diesel: Now the charge on export of diesel has been increased from Rs 13.5 per liter. Rs 14 per liter Has been done.

  • Export duty on ATF (aerofuel): The export duty of ATF has been increased the most. By directly increasing the tax on it from Rs 9.5 per liter Rs 12.5 per liter Has been done.

  • No change on petrol: Petrol export duty unchanged Rs 1.5 per liter It has remained stable at the previous level.

Relief from Cess: The good thing is that under this new change in tax, no additional ‘Road and Infrastructure Cess’ has been imposed on these three petroleum products.

Government keeping a close eye on Middle East (West Asia) crisis

According to the Finance Ministry, these new rates of windfall tax will be effective for the next two weeks starting from June 16. This step has been taken by the government at a time when due to the ongoing geo-political tension in West Asia, huge fluctuations are being seen in the prices of crude oil and refined petroleum products globally.

To deal with this international uncertainty and to ensure adequate availability of petroleum products within the country, the government has Special Additional Excise Duty (SAED) This export charge has been increased under. Its main objective is to curb the competition by domestic private refinery companies to sell oil abroad only for profit, leaving the Indian market.

Fuel prices will remain controlled in the domestic market

This recent increase in the tax structure makes it clear that the government is fully alert about the rising prices of crude oil at the international level. The government has prepared this maze to prevent the danger of domestic private oil refineries reducing the supply of fuel within the country due to the lure of high global prices.

By increasing the export tax, the government wants to make the profits from foreign sales less attractive, so that oil companies are motivated to increase the supply of fuel in the country’s domestic market. Due to this policy, there will be abundant availability of diesel, petrol and aviation fuel in the Indian market, which will be of great help in controlling the retail prices of fuel at the domestic level.