Govt cuts windfall tax on diesel, ATF exports from October 1

The government has cut the windfall tax on exports of diesel and aviation turbine fuel (ATF) for the fortnight beginning October 1, according to the finance ministry notifications.

The special additional excise duty on diesel exports has been revised to ₹16 per litre, down from ₹20 per litre.

SAED on export of ATF has been revised at ₹10.5 per litre from ₹15 per litre last fortnight.

The revised rates replace the rates applicable from September 16 and will remain effective from October 1.

Duty on petrol exports has been retained at ₹0.5 per litre for the next fortnight.

The ministry also said that there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.

Commercial LPG rates were hiked by ₹62.59 per 19-kg cylinder.

Commercial LPG prices were raised by ₹9.50 per 19-kg cylinder in September, following two consecutive monthly reductions of ₹192 in August and ₹183.50 in July. The cuts came after commercial LPG prices had surged to a record high in June amid disruptions to global energy supplies and elevated international prices.

Commercial LPG prices had risen by ₹1,373 per 19-kg cylinder between February and June, from ₹1,740.50 to ₹3,113.50, before falling in July and August.

The government reviews the levy on petroleum product exports every fortnight, with rates adjusted depending on international crude oil and refined product prices.

In its September 16 review, the government had reduced the levy on diesel exports to ₹20 per litre from ₹25 per litre, while the duty on ATF exports was cut to ₹15 per litre from ₹19 per litre.

The windfall tax regime was introduced to ensure adequate domestic availability of petroleum products and discourage refiners from diverting supplies to overseas markets to take advantage of higher international prices.

The government had imposed the export duty on diesel and ATF from March 27 amid escalating tensions in West Asia. The levy on petrol exports was introduced from May 16.

The latest notifications, issued under the Central Excise Act, 1944, amend the respective central excise notifications issued on March 26, 2026.