Starting this Saturday, the Indian government has implemented a reduction in windfall taxes applied to the export of diesel, petrol, and aviation turbine fuel. According to the official notification, the levy on diesel exports has been lowered to Rs 24 per litre, down from the previous rate of Rs 25.5. Similarly, the tax on aviation turbine fuel has seen a decrease, moving from Rs 22 to Rs 19.5 per litre, while the export duty on petrol has been completely eliminated, dropping from Rs 3.5 to zero.

These adjustments are part of India’s ongoing strategy to regulate domestic supply and manage the extraordinary profits generated by global oil price volatility. Originally introduced in mid-2022 and later reintroduced in early 2026 amid rising geopolitical tensions, these levies are adjusted every two weeks. By keeping the export duties tied to shifting international crude oil prices, the government aims to maintain a balance between domestic market stability and the profitability of petroleum exports.