India adjusts windfall tax on petrol and diesel exports effective Oct. 16

India's Central Board of Indirect Taxes and Customs issued a statement that the windfall gains tax on petrol and diesel exported from the country will be revised, with the new rates becoming effective on Oct. 16. The board adjusts these rates fortnightly, using the average crude oil price from the preceding 15 days as a benchmark. Domestic consumption duties on petrol and diesel were left unchanged, and the tax on aviation turbine fuel (ATF) continues at its existing level.

The timing coincides with heightened freight and insurance expenses driven by the ongoing US-Iran and Russia-Ukraine wars, which have lifted crude oil prices to roughly $95 per barrel, according to LSEG data. This move reflects the government's effort to balance export revenue with global market pressures. No other fiscal measures were announced alongside the tax change.