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India Raises Windfall Taxes on Petrol, Diesel, Jet Fuel Exports

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India raised windfall taxes on petrol, diesel and aviation fuel exports with immediate effect through three government notifications issued by the Ministry of Finance on Monday.

The ministry increased the export duty on petrol to 3.5 Indian rupees ($0.03) per liter from 2.5 rupees per liter, according to the notification.

Two notifications raised diesel export levies to 24 Indian rupees per liter and 1.5 Indian rupees per liter, increasing the combined export duty to 25.5 Indian rupees per liter from 15.5 Indian rupees per liter.

The Ministry of Finance also increased the export duty on aviation fuel to 22 Indian rupees per liter from 14.5 Indian rupees per liter.

The three notifications amend earlier Central Excise notifications issued on March 26, 2026 and took effect immediately upon publication in the Official Gazette, the ministry said.

Soaring oil prices prompted India to introduce the windfall tax in July 2022. The government later removed the levy in December 2024, but restored it in March 2026 after oil prices surged during the US-Israeli war with Iran.

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