Some relaxation has been provided by the government to exporters of petroleum products. The windfall gains tax has been reduced for the exports of diesel and aviation fuel (ATF).

The revised rates will come into effect from May 1, 2026. The new export tax rate of diesel is ₹23 per liter and that of ATF is ₹33 per liter. No export tax is being charged on petrol exports. A notification in this regard was issued by the revenue department on April 30.

The windfall gains tax is levied periodically. With an increase in crude oil prices globally, domestic oil companies such as ONGC, OIL, and Vedanta are compensated proportionately. Indian petroleum product exporters benefit from this tax.

Therefore, the government adjusts these taxes by imposing taxes on them. This helps increase domestic supply of petroleum products, as export profits are reduced for companies. On March 26th, the government imposed an export tax of ₹21.50 per liter on diesel and ₹29.5 per liter on ATF.

This was later increased (on April 11th) to ₹55.5 per liter on diesel and ₹42 per liter on ATF. Now, these taxes have been significantly reduced. The same taxes will remain on petrol and diesel in the domestic market, so there will be no additional burden on the common man's pocket at petrol pumps.

This will increase their stock and availability in the country, preventing shortages or sudden inflation. This decision will no longer result in lower profits for the country's major petroleum companies selling diesel and ATF abroad, but the reduced tax will make their exports easier.

Due to the Iran war, crude oil prices had reached a four-year high of $126 per barrel. This led to a tax on exports that prevented companies from exporting. Now, the tax has been reviewed and reduced based on international prices. These rates are being reviewed every 15 days.