India has cut its windfall taxes on petrol, diesel and aviation turbine fuel exports, reflecting ongoing adjustments amid fluctuating global crude prices and geopolitical tensions, marking a significant shift in its energy export policy.
India cut its windfall tax on exports of petrol, diesel and aviation turbine fuel on Saturday, according to a government order, extending a series of fortnightly adjustments tied to swings in global crude and product prices.
The levy on diesel exports was reduced to 24 rupees a litre from 25.5 rupees, while the tax on petrol exports was removed entirely from 3.5 rupees a litre, the order showed. The charge on aviation turbine fuel was also trimmed to 19.5 rupees a litre from 22 rupees.
India first imposed windfall taxes in July 2022 to capture gains from a surge in oil prices, then withdrew them two years later. Reuters reported that the government brought them back in March 2026 after crude prices rose during the US-Israeli war on Iran, and has since been reviewing export duties every two weeks in line with international oil markets.
The latest cuts come after a rapid sequence of changes this year. Livemint reported that on May 31, India reduced the levy on petrol exports, lowered duties on diesel and jet fuel and set a separate road and infrastructure cess on petrol and diesel exports to nil. NDTV and The Economic Times later reported further increases in June and July as energy markets remained volatile, with diesel and aviation fuel duties moved up again while petrol export levies were reduced.
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