Tax reduced on diesel and ATF exports, ; new rates effective from today

Amid ongoing volatility in the global oil market and easing crude oil prices, the central government has taken a major and significant decision for the country’s oil companies. On Tuesday, the government issued a new official notification, substantially reducing the windfall tax imposed on the export of diesel and aviation turbine fuel (ATF). However, on the other hand, to ensure adequate fuel availability within the country, it has increased the duty on petrol exports. According to the Ministry of Finance, these new tax rates will come into effect from July 1, 2026.

Amid the ongoing geopolitical tensions and crisis in West Asia, the government has taken this step to maintain adequate availability of petrol and diesel in the domestic market.

Under this policy, the government has provided significant relief to India’s friendly countries. When this export levy was introduced in March, exports by public sector oil companies (PSUs) to Nepal, Bhutan, Bangladesh, and Sri Lanka were exempted from this tax. The government has now expanded the scope of this special exemption to include Mauritius and the Maldives as well..(UPDATED ON 30TH JUNE 2026)