India lowers export duties on diesel and aviation turbine fuel

NEW DELHI, May 1, 2026:- The government has announced a significant reduction in the windfall gains tax on the export of diesel and aviation turbine fuel, effective this Friday.

According to a statement from the finance ministry, the special additional excise duty on diesel exports has been lowered to 23 per litre from the previous rate of 55.5 per litre. Similarly, the tax on aviation turbine fuel exports has been cut to 33 per litre from 42 per litre.

Despite these changes for international trade, the ministry confirmed that existing excise duty rates for petrol and diesel intended for domestic consumption will remain unchanged.

This adjustment comes as part of a fortnightly review of energy taxes influenced by shifting global market conditions. The government also noted that the road and infrastructure cess on diesel exports will be set to nil for the next two weeks, while the duty on petrol exports remains at zero.

These levies were originally intensified to ensure sufficient domestic fuel availability and to manage price volatility caused by ongoing geopolitical tensions in West Asia, which recently saw crude oil prices climb to 126 per barrel.

The latest reduction aims to balance domestic supply needs with the current global pricing landscape.