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According to the notification of the Finance Ministry, the government has increased the windfall tax on the export of petrol and diesel. At the same time, there has been a slight reduction in the duty applicable on aircraft fuel. The revised new rates will be effective for the next fortnight from September 1.

According to the notification, Special Additional Excise Duty (SAED) along with Road and Infrastructure Cess on export of diesel has been increased to Rs 25 per liter, which was earlier Rs 24 per liter.

At the same time, SAED on export of aviation fuel has been reduced to Rs 19 per liter, whereas earlier it was Rs 19.50 per liter. Similarly, the duty on export of petrol has also been reduced to Rs 1.50 per litre, which was earlier zero.

The Finance Ministry said in the notification that the increase in fees has become effective from September 1. Windfall profits tax is a fee imposed by the central government.

It is imposed on specific companies or industries that earn huge profits due to unexpected external events rather than their business strategies.

The Ministry has clarified that there has been no change in the existing duty rates applicable on supply of petrol and diesel for domestic consumption.

Earlier, amid increasing tension in West Asia, the Central Government had imposed this duty on the export of diesel and ATF on March 27, 2026. After this, this duty was also imposed on the export of petrol from May 16. Its rates are being reviewed every fortnight.

It is noteworthy that the government had imposed such windfall profit tax to ensure adequate availability of fuel in the domestic market amid the ongoing crisis in West Asia and to prevent exporters from taking unfair advantage of the price differential created by the rise in global crude oil prices.