petrol-diesel
The government has reduced the windfall tax on export of diesel to Rs 23 per liter from May 1, 2026. At the same time, this tax on fuel (ATF) used in planes has now been increased to Rs 33 per liter. In the statement of the Finance Ministry late on Thursday night, it was said that the tax on export of petrol will still remain zero.
The ministry also said that no change has been made in the excise tax currently being imposed on petrol and diesel used within the country. The special additional tax imposed on the export of diesel was earlier Rs 55.5 per liter, which has now been reduced to Rs 23. Whereas this tax on ATF has been reduced from Rs 42 to Rs 33 per liter.
Road and development tax (cess) on the export of diesel has been kept at zero for the next 15-day period starting from May 1. On March 26, the government had imposed export tax of Rs 21.50 per liter on diesel and Rs 29.5 per liter on ATF. After this, in the review of April 11, these taxes were increased to Rs 55.5 and Rs 42.
Why was this tax imposed?
The government had imposed this tax to maintain the fuel supply in the country during the ongoing war between America, Israel and Iran. Its purpose was also to ensure that the companies that send fuel abroad cannot take advantage of the difference in global prices. After the war started, crude oil prices increased rapidly across the world. On February 28, America and Israel launched a military attack on Iran, after which Iran also retaliated.
Due to this, the prices of crude oil increased to around $126 per barrel, whereas before the war it was around $73 per barrel. The ministry said that in view of the tension in West Asia, this tax was imposed to maintain the supply of petrol and diesel in the country by reducing exports.
Also read- Along with commercial, the prices of Chhotu cylinders also increased, increase by Rs 261.
