India revises windfall tax on fuel exports

The India — India has revised the windfall tax on exports of petroleum products, raising the levy on diesel and aviation turbine fuel (ATF) while reducing the duty on petrol, effective July 16, 2026. The Special Additional Excise Duty (SAED) on diesel exports was increased to Rs 15.5 per litre from Rs 8.5 per litre, and on ATF to Rs 14.5 per litre from Rs 7.5 per litre. Conversely, the export duty on petrol was cut to Rs 2.5 per litre from Rs 4 per litre. The revision comes amid a sharp rebound in global crude oil prices, with Brent crude rising to a one-month high of $84.73 per barrel after the United States reinstated a naval blockade on Iran, renewing concerns over supplies through the Strait of Hormuz. The windfall tax, first imposed in March 2026, is reviewed fortnightly to ensure domestic fuel availability and prevent exporters from profiting from price differences. Earlier, on July 1, the government had raised the petrol export duty and cut levies on diesel and ATF. Separately, Nayara Energy reduced petrol and diesel prices, and state-run oil companies cut commercial LPG and ATF prices. The government also extended exemptions for exports to Mauritius and Maldives.