Now Reading: India cuts windfall tax on petrol, diesel, aviation fuel
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India cuts windfall tax on petrol, diesel, aviation fuel
India has reduced windfall taxes on exports of petrol, diesel, and aviation turbine fuel with effect from Saturday, according to a government order. Diesel duty cut to Rs 24 per litre from…
The Story in Brief
India has reduced windfall taxes on exports of petrol, diesel, and aviation turbine fuel with effect from Saturday, according to a government order. Diesel duty cut to Rs 24 per litre from Rs 25.5; petrol duty set at zero from Rs 3.5; aviation fuel tax reduced to Rs 19.5 per litre from Rs 22. India first imposed windfall taxes in July 2022 and scrapped them two years later, but reintroduced them in March 2026 after oil prices surged during the US-Israeli war on Iran. The taxes are revised every fortnight based on international oil prices. The rupee rate is about Rs 95.44 per dollar.
The Indian Opinion
Critics may frame the tax cut as a giveaway to oil exporters, but the fortnightly revision shows it is a dynamic policy responding to global prices. The zero duty on petrol exports is notable, was it necessary to maintain competitiveness or is the war premium subsiding? The real test is the next revision when international crude benchmarks are published.
Sources (2): economictimes.indiatimes.com, deccanherald.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
