The government has notified revised windfall tax rates on fuel exports for the fortnight beginning June 1, 2026, with levies reinstated on diesel and aviation turbine fuel (ATF) after being held at nil in recent review cycles.As per the official notification, the duty on petrol exports has been set at Rs 1.5 per litre, entirely in the form of Special Additional Excise Duty (SAED), with no Road and Infrastructure Cess (RIC) applicable. Diesel exports will attract a duty of Rs 13.5 per litre, wholly as SAED, while ATF exports will be subject to an SAED of Rs 9.5 per litre.Also read: Oil prices tumble 11% for biggest weekly drop in 7 weeks. Where is liquid gold headed from here?The government clarified that there is no change in existing excise duty rates on petrol and diesel sold in the domestic market.The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks.India first imposed a windfall tax on exports by oil refiners and producers in July 2022, announcing levies on petrol, diesel, and domestically produced crude oil. The government later extended the levy on exports of petrol, diesel, and ATF, as private refiners sought to sell fuel overseas to capitalise on robust refining margins rather than selling locally.The windfall tax on fuel exports is based on cracks, or margins, that refiners earn on overseas shipments, primarily the difference between the international oil price realised and the cost.Also read: Transport association urges government to cut fuel prices as crude falls to $90/barrelThe levy has seen significant fluctuation over the past year. As recently as May 2025, the SAED on the export of diesel, petrol, and ATF had been retained at nil, reflecting softer global crude prices at the time. The June 1 revision signals a tightening of margins once again, prompting the government to step in.The windfall tax regime primarily affects large private refiners such as Reliance Industries, which exports a significant share of its refinery output, along with state-owned producers including ONGC and Oil India.