India increases export-linked levies on major petroleum products, a move described as a rise in windfall tax. Multiple sources report that the export duty on diesel is raised to Rs 24 per litre. Alongside diesel, export duties are also increased for other fuels, including petrol and aviation turbine fuel (ATF), with the adjustments following the same windfall-tax framework. The changes apply to products shipped for export rather than those sold within India’s domestic market.
At the same time, the excise duty on petroleum products sold domestically remains unchanged. This distinction is highlighted in reporting: while export duties increase, duties on domestic sales are not altered in the same way. The overall policy approach aims to capture part of higher profitability associated with current market conditions for exports, without changing the tax rate for fuel consumers in the domestic market. The updates cover key products and are presented as part of a broader revision to export levy rates for petroleum.
