Windfall tax: what it is and why fuel exporters pay it
A windfall tax is an extra levy on industries earning unusually high profits from exceptional market conditions.
India imposed one on fuel exports on March 27, 2026, after the West Asia war pushed global crude prices higher. The tax, officially Special Additional Excise Duty plus Road and Infrastructure Cess, discourages refiners from exporting diesel and jet fuel instead of supplying India.
Rates are reviewed every fortnight based on international crude prices. From October 1, the diesel export levy fell from Rs 20 to Rs 16 per litre, and ATF from Rs 15 to Rs 10.5 per litre. Petrol exports stay at Rs 0.5 per litre.
Domestic fuel duties did not change. The government says the tax targets extraordinary export margins, not normal profits, and keeps fuel available at home during supply shocks. India first introduced the export levy during the 2022 energy crunch. The mechanism has since become a routine fortnightly review tied to crude benchmarks.
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Khabar 24h Editorial Desk — our explainers are prepared by the Khabar 24h editorial team using AI-assisted research tools, and every piece is reviewed by a human editor before publishing. We do not claim original reporting: our work is turning complex topics into simple, accurate summaries. Spotted an error? Write to contact@khabar24h.com — our corrections policy aims for same-day review.
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