Proponents of the windfall tax argue that it is a necessary tool for maintaining national energy security during periods of extreme global instability. When geopolitical conflicts, such as those in West Asia, cause international oil prices to spike, domestic refiners may be tempted to prioritize lucrative export markets over local needs. By imposing a special additional excise duty, the government effectively narrows the profit gap between exporting fuel and selling it domestically. This ensures that India’s own refineries continue to supply the local market, preventing potential shortages that could drive up inflation and hurt the broader economy.
Furthermore, supporters emphasize that these levies allow the state to capture a fair share of 'windfall' gains—profits that are not the result of operational efficiency or business innovation, but rather external, unpredictable events. These revenues provide the government with essential fiscal space to manage the impact of high energy costs on the public, such as funding subsidies for food and fertilizers. By treating these extraordinary profits as a shared national resource during crises, the government maintains a balanced economic environment, preventing a scenario where private companies benefit disproportionately from global suffering while the average citizen faces rising costs.