India Recalibrates Windfall Taxes as Global Oil Prices Soften

The revisions arrive as Brent crude retreats from its volatile peaks of over $126 per barrel. Diesel export duties are dropping significantly from 14 rupees to 8.5 rupees per litre, while aviation turbine fuel sees a similar reduction from 12.5 rupees down to 7.5 rupees per litre. In a countermove, the duty on petrol exports climbs to 4 rupees from 1.5 rupees per litre to protect local availability.

Market stabilization stems from the easing of geopolitical friction and the restoration of reliable shipping lanes through the Strait of Hormuz, which has effectively dampened fears of major supply chain disruptions. With these pressures lifting, economists project that average Brent crude prices will continue a downward trajectory through 2026, forcing further adjustments to India's energy tax framework.