India has reduced the windfall tax on diesel and aviation turbine fuel exports for the fortnight starting October 1, the finance ministry said.

The tax on diesel exports was cut to Rs 16 per litre from Rs 20, while the levy on ATF was lowered to Rs 10.5 per litre from Rs 15. The tax on petrol exports was left unchanged at Rs 0.5 per litre.

The windfall tax is revised every fortnight based on global crude oil prices and refining margins. The latest cut reflects softer international prices.

India introduced the windfall tax in 2022 to capture super-normal profits made by refiners when global energy prices surged. The levy applies to exports of petrol, diesel and ATF.

In a separate move, the price of a commercial LPG cylinder was raised by Rs 62.59. The changes come as the government balances consumer inflation against revenue needs. Energy analysts said the fortnightly revision mechanism allows the tax to track global market conditions closely.