Fuel Prices Alert: Windfall Tax Hiked On Diesel, Unchanged For Petrol; HPCL, IOCL, BPCL Shares In Focus

The government has hiked the windfall tax on diesel to Rs 14 per litre with effect from June 16, 2026, while keeping SAED on exports of petrol unchanged to Rs 1.5 per litre. Windfall tax rates are imposed by governments on several sectors and companies to curb a portion of their unexpected profits. In general terms, a windfall tax is imposed to create a fair value share among the industries and bans companies from exploiting unrealistic gains in the future amidst vulnerable macro conditions such as geopolitics.

The government benefits from the windfall tax hike but not the companies. Hence, oil marketing companies like BPCL, IOCL and HPCL will be in focus on Tuesday.

Windfall Tax On Petrol, Diesel

With effect from June 16, SAED is hiked to Rs 14 per litre on diesel from earlier Rs 13.5 per litre. On the other hand, SAED on petrol is unchanged to Rs 1.5 per litre.

Petrol Prices In India:

Since US-Israel-Iran war, petrol prices in India witnessed significant and back-to-back hikes in May 2026. The last hike in petrol prices was in the range of Rs 2.46 to Rs 2.95 per litre with effect from May 25, 2026. Prior to this, petrol prices were raised by Rs 0.87 to Rs 1.46 on May 23, and earlier were hiked by Rs 0.82 to Rs 1.71 per litre. OMCs began hiking petrol prices for the first time since April 2022, by Rs 2.82 to Rs 3.39 per litre on May 15, 2026.

City	Price	Price Change
New Delhi	₹102.12	0.00
Kolkata	₹113.47	0.00
Mumbai	₹111.18	0.00
Chennai	₹107.87	+0.12
Gurgaon	₹102.80	-0.04
Noida	₹102.12	0.00
Bangalore	₹110.89	-0.08
Bhubaneswar	₹108.89	-0.17
Chandigarh	₹101.54	0.00
Hyderabad	₹115.69	-0.04
Jaipur	₹113.15	+0.05
Lucknow	₹101.86	-0.03
Patna	₹114.24	+0.69
Thiruvananthapuram	₹115.49	0.00

Diesel Prices In India:

Along the similar lines, diesel has also become costly due to the West Asia war. The latest round of hike was by Rs 2.57 to Rs 3.03 per litre on May 25, followed by hike of Rs 0.87 to Rs 1.45 per litre on May 23. Diesel rates were also hiked by Rs 0.84 to Rs 1.22 per litre on May 19 and the first hike began on May 15 to the tune of Rs 2.74 to Rs 3.26 per litre since US-Iran conflict.

City	Price	Price Change
New Delhi	₹95.20	0.00
Kolkata	₹99.82	0.00
Mumbai	₹97.83	0.00
Chennai	₹99.66	+0.10
Gurgaon	₹95.47	-0.04
Noida	₹95.56	0.00
Bangalore	₹98.80	-0.07
Bhubaneswar	₹100.60	-0.17
Chandigarh	₹89.47	0.00
Hyderabad	₹103.82	0.00
Jaipur	₹98.22	+0.05
Lucknow	₹95.36	0.00
Patna	₹100.20	+0.66
Thiruvananthapuram	₹104.42	+0.11

How Does a Windfall Tax Impact OMCs & Fuel Products?

As per Tata Capital explainer on website, here's how windfall tax impacts OMCs and fuel prices. 1

1. A windfall tax is a temporary levy that governments impose on companies that earn unexpected profits due to sudden market changes or external factors.

2. When India introduced the windfall tax on domestic crude oil producers and fuel exporters, it lowered profit margins for these companies, making their financial performance less attractive.

3.It also created uncertainty, leading to potential delays in investment and expansion plans.

4. From a market viewpoint, the tax helped stabilize oil prices by preventing companies from taking advantage of high prices.

5. It made Indian fuel exports less competitive, which can lead to a decrease in export volumes.

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