Why in News?
The government has raised export duty (windfall tax) on petrol, diesel and ATF, effective 3 August 2026, amid volatility in global crude prices due to rising US-Iran tensions.
About Windfall Tax
- A tax on industries earning unusually high profits due to favourable market conditions, not their own efforts.
- Aim is to capture part of these extraordinary gains for public use.
- In India, levied as SAED on crude oil and on exports of petrol, diesel and ATF.
- Discourages exports when overseas margins are high, pushing refiners to sell more at home.
- First introduced in India on 1 July 2022 after global oil prices spiked post Russia-Ukraine war.
