India reduces windfall tax on diesel and aviation fuel exports

The Indian government has reduced the windfall tax on the export of diesel and aviation turbine fuel (ATF) to provide relief to petroleum companies. Effective October 1, the Special Additional Excise Duty (SAED) on diesel exports has been lowered from ₹20 per liter to ₹16 per liter, while the duty on ATF has been reduced from ₹15 per liter to ₹10.5 per liter.

The tax adjustments follow rising tensions in the Middle East and fluctuations in global crude oil prices. The windfall tax was originally implemented to prevent exporters from gaining unfair advantages due to price gaps and to ensure domestic fuel availability during geopolitical instability. The tax rate for petrol exports remains unchanged at ₹0.5 per liter.

As of October 2, 2026, fuel prices continue to vary across major Indian cities. In New Delhi, petrol is priced at approximately ₹102.12 per liter and diesel at ₹95.20 per liter. Other cities show significant variations, with Mumbai reporting petrol at ₹111.18 and Hyderabad at ₹115.69.