Petrol-Diesel Price Today: As the month of May begins, the government has given big relief to petroleum companies. The windfall tax on diesel has been reduced to almost half. Similarly, tax on aviation fuel has also been reduced. Know what effect this will have on you…
1 May 2026 Big Changes: Today, from May 1, there has been a big change regarding fuel in the country. Amidst the ongoing tension in the Middle East and fluctuations in the global market, the Indian Government has taken a decision which has brought great relief to the petroleum companies and the market. The government has halved the tax on diesel. Along with this, there has also been a huge reduction in flight fuel tax. Let us know which taxes have been cut by the government and will this reduce the burden on your pocket?
Huge cut in tax on diesel
The government has released new rates of ‘Windfall Tax’ on petroleum products. The tax which was ₹ 55.5 per liter till yesterday, has been reduced to only ₹ 23 per liter from today. That means taxes have been reduced by more than half. Tax on aviation fuel (ATF) i.e. flight fuel has also been reduced from ₹ 42 to ₹ 33 per litre. It is a matter of relief that there will be no tax (Zero Duty) on petrol like before.
What benefit are you going to get?
The biggest question is whether the prices of petrol and diesel will reduce? See, this tax is levied on the ‘excess profits’ of companies. Reduction in taxes will reduce the costs of petroleum companies. Although, the prices of oil available at petrol pumps will not directly decrease today, but this will improve the supply in the market and increases the chances of prices remaining stable or decreasing in the future.
Why was this decision taken?
Despite war-like situations across the world, oil consumption in India has reached record levels. In the year 2026, India has used 243 million tonnes of petroleum products. The aim of the government is that there should be no shortage of oil in the country and the companies should not suffer huge losses.
What is windfall tax?
In simple words, when due to external circumstances like war or epidemic, a company starts making huge profits without any hard work, then the government takes a part of that profit as tax. This is called windfall tax. It is reviewed every 15 days.