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The Government has announced a revision in windfall gains tax, also known as Special Additional Excise Duty (SAED), on the export of petrol, diesel, and Aviation Turbine Fuel (ATF). The updated tax structure will come into effect from the fortnight starting May 16.
According to the revised notification, the tax rates on diesel and ATF exports have been reduced, while petrol exports have seen an increase in duty.
Key changes in windfall gains tax
The revised structure brings notable changes across major petroleum products exported from India:
- The Special Additional Excise Duty on ATF exports has been reduced to Rs 16 per litre
- SAED on diesel exports has been revised to Rs 16.5 per litre
- The special excise duty on petrol exports has been increased from nil to Rs 3 per litre
These changes reflect the government’s periodic review of export duties in line with international crude oil price movements and domestic supply conditions.
Effective date and implementationThe revised windfall gains tax rates will be applicable from the fortnight beginning May 16. The government regularly reviews these rates every two weeks, depending on global oil price trends and revenue considerations.
Officials stated that there has been no change in the excise duty applicable to domestic consumption of petrol, diesel, or ATF. This means retail fuel prices for domestic consumers are expected to remain unaffected by this revision.
Background on windfall gains tax
India first introduced windfall gains tax in July 2022 when global crude oil prices surged sharply following geopolitical tensions. The duty was imposed on domestic refiners and exporters to capture excess profits earned due to elevated global energy prices.
Since its introduction, the tax structure has been revised multiple times to reflect changes in global oil markets, ensuring a balance between export competitiveness and domestic revenue protection.
Impact on oil exporters
The latest revision may have mixedmplications for oil marketing companies and refiners engaged in exports. While reduced duties on diesel and ATF may improve export margins, the introduction of duty on petrol exports could slightly impact profitability in that segment.
Market participants will closely monitor further revisions in the coming fortnights as crude oil price volatility continues to influence policy decisions.
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