India Increases Windfall Tax on Fuel Exports Amid Rising Global Prices

April 13, 2026

New Delhi: The Indian government has increased the windfall tax on jet fuel and diesel exports. This decision was announced through a notification by the Central Board of Indirect Taxes and Customs (CBIC).

The Special Additional Excise Duty (SAED) on jet fuel has been increased from ₹29.50 per liter to ₹42.00 per liter. The total tax on diesel has been increased from ₹21.50 per liter to ₹55.50 per liter. This includes the SAED increase of ₹24 per liter and the Road and Infrastructure Cess increase of ₹31.50 per liter.

Maintaining Domestic Supply is the Main Objective
The government states that this move is aimed at discouraging excessive exports and ensuring adequate fuel availability in the country. Due to the rise in global prices, companies were exporting more, which could have affected domestic supply.

Impact of the Rise in the Global Market
Fuel prices are steadily rising in the international market. Between March 27 and April 10, the average crack spread for jet fuel was $74.43 per barrel and for gasoil was $68.66 per barrel, higher than on March 26. This increase has made exports more attractive.

Changes in Export Figures
India’s total jet fuel and gasoil exports are projected to reach 2.58 million metric tons in April, slightly higher than 2.45 million tons in March. Gasoil (diesel) exports are expected to increase, while jet fuel exports may decline. The rise in diesel exports is believed to be the main reason for the significant increase in its tax.