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Centre Cuts Windfall Tax on Diesel, ATF Exports From October 1

The Finance Ministry said the revised rates will apply for two weeks as export duties are reviewed every fortnight to protect domestic fuel supplies.

  • The Finance Ministry notified a reduction in export levies for diesel and aviation turbine fuel effective today. The Centre decreased diesel duties to Rs 16 per litre and ATF to Rs 10.5 per litre.
  • Amid the West Asia crisis, India has conducted fortnightly reviews since March 27, 2026. These measures aim to ensure domestic availability of petroleum products by discouraging exports when global prices are elevated.
  • Diesel exporters will pay Rs 4 less per litre under the new rates, while the levy on ATF exports falls by Rs 4.50 per litre. These reductions follow the previous fortnightly review on September 16.
  • Petrol export duties remain unchanged at Rs 0.5 per litre for the current period. Domestic Excise duty rates for fuel cleared for local consumption also remain unaffected by this export tax adjustment.
  • Indian refiners face varying impacts depending on international prices, refining margins, and export volumes. The Centre continues adjusting rates every two weeks based on changing global energy market conditions.
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Reuters broke the news in London, United Kingdom on Wednesday, September 30, 2026.
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