UPSC Prelims Practice Questions — Centre hikes windfall gains tax on diesel, ATF for exports

Q1. Counting both domestic production and export categories, on how many distinct petroleum products has India's windfall gains tax (SAED) been applied?

  • A. Three
  • B. Four
  • C. Five
  • D. Six

Q2. When India introduced the windfall gains tax on 1 July 2022, which one of the following was the FIRST item to be brought under the levy?

  • A. Domestically produced crude oil
  • B. Exported diesel
  • C. Exported aviation turbine fuel (ATF)
  • D. Exported petrol

Q3. The windfall gains tax (SAED) on crude and fuel exports in India is administered by which one of the following?

  • A. Ministry of Finance (Department of Revenue)
  • B. Ministry of Petroleum and Natural Gas
  • C. Ministry of Commerce and Industry
  • D. NITI Aayog

Q4. In the context of India's windfall tax, the export levy on refiners is computed on the basis of which one of the following?

  • A. The difference between the domestic cost and the international price realised on overseas shipments
  • B. The total turnover of the refiner across domestic and export sales
  • C. The landed cost of imported crude oil paid by the refiner
  • D. The retail selling price of fuel at domestic pumps

Q5. The April 2026 upward revision of the windfall tax on export-bound diesel and ATF was ordered under the authority of which one of the following?

  • A. The Union Finance Ministry (Department of Revenue)
  • B. The Reserve Bank of India
  • C. The GST Council
  • D. The Ministry of Petroleum and Natural Gas

Q6. In the windfall tax revision reported in April 2026, which fuel recorded the LARGEST percentage increase in the levy?

  • A. Diesel
  • B. Aviation turbine fuel (ATF)
  • C. Petrol
  • D. Domestically produced crude oil

Q7. The windfall tax on the export of petrol, diesel and ATF was introduced primarily to address which one of the following situations?

  • A. Private refiners diverting output overseas to capture higher international margins
  • B. A shortage of crude oil for domestic refining
  • C. Rising subsidy on domestic LPG cylinders
  • D. Smuggling of subsidised diesel across international borders