India cuts windfall tax on export of petrol, diesel, aviation fuel

[Raj-Hindustani]

India cuts windfall tax on export of petrol, diesel, aviation fuel

By Reuters
September 17, 20261:42 AM GMT+5:30Updated 10 hours ago

A worker holds a nozzle to pump fuel in a vehicle at a petrol pump in New Delhi, India, May 19, 2026. REUTERS/Adnan Abidi/File Photo Purchase Licensing Rights, opens new tab
Sept 16 (Reuters) - India has lowered windfall taxes on exports of ‌petrol, diesel and aviation turbine fuel with immediate effect, according to a government order ⁠issued late on Wednesday.
Here are more details from the order
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• The duty on diesel exports has been cut to 20 rupees per litre from 25 rupees earlier.
• The ‌levy ⁠on export of petrol been cut to 0.5 rupees per litre from ⁠1.5 rupees earlier.
• The tax on aviation turbine fuel has ⁠been set at 15 rupees per ⁠litre from 19 rupees earlier.

 

[Raj-Hindustani]

Seriously, I didn’t know India earns so much in foreign currency from this.

The government can earn ₹20–25 per litre in taxes on certain petroleum exports, while the refineries also earn from their refining margins. Since India imports crude oil, this model of importing crude, refining it, and exporting higher-value petroleum products is actually not a bad source of foreign-exchange earnings for India.