India Cuts Windfall Tax on Petrol Exports to Zero

Current  Context:  The Government of India reduced the windfall tax on petrol exports to zero with effect from 15 August 2026, cutting it from ₹3.50 per litre. The government also lowered the export levy on diesel from ₹25.50 to ₹24 per litre and on Aviation Turbine Fuel (ATF) from ₹22 to ₹19.50 per litre.

Key Points

• Effective Date: 15 August 2026
• Petrol export duty: ₹3.50/litre → Nil
• Diesel export duty: ₹25.50/litre → ₹24/litre
• ATF export duty: ₹22/litre → ₹19.50/litre
• The government reviinternational crude oil and petroleum-product prices into account. 
• India originally introduced windfall taxes in July 2022 to capture extraordinary profits earned by oil companies when global energy prices surged. The export-levy regime was reintroduced in March 2026 after another sharp rise in oil prices. 
• The latest reduction concerns petroleum exports, so it does not directly mean lower petrol or diesel prices for Indian consumers. 

Question:

Q1. With effect from 15 August 2026, the Government of India reduced the windfall tax on exports of which petroleum product to zero?
A. Diesel
B. Aviation Turbine Fuel
C. Petrol
D. Crude Oil

Answer: c)  The Government of India reduced the windfall tax on petrol exports from ₹3.50 per litre to Nil, effective 15 August 2026