New Delhi: The government has raised the export duty on petrol to ₹2.5 per litre and reduced the levy on diesel to ₹8.5 per litre, with both changes taking effect from Friday, October 16.
According to a Finance Ministry notification, the duty on petrol exports has increased from ₹0.50 per litre, while the levy on diesel has been reduced from ₹16 per litre.
The government reviews export duties on petroleum products every fortnight, taking into account changes in international crude oil and fuel prices. The latest revision comes amid continued volatility in global oil markets and geopolitical tensions.
Petrol and Diesel Export Duties Revised
The latest order marks a sharp increase in the duty on petrol exports, while the levy on diesel has been reduced by ₹7.50 per litre.
In September, the government had lowered export duties on petrol, diesel and aviation turbine fuel (ATF) during its regular review. The petrol export duty was brought down to ₹0.50 per litre, comprising Special Additional Excise Duty (SAED).
In an earlier revision effective September 1, the government had reduced the export levy on diesel to ₹1 per litre from ₹3 per litre. The windfall tax on diesel exports was also cut to ₹19 per litre from ₹24 per litre.
Export Duties Changed Several Times in Recent Months
The government made further changes to petroleum export duties in August. At the time, the petrol export duty was raised to ₹3.50 per litre from ₹2.50 per litre.
The total duty on diesel exports was increased to ₹25.50 per litre from ₹15.50 per litre, while the export levy on ATF was raised to ₹22 per litre from ₹14.50 per litre.
These repeated revisions reflect the government’s fortnightly approach to adjusting duties as international energy prices change.
Why the Government Imposes Windfall Tax
India first introduced windfall taxes on fuel exports in July 2022 to capture unusually high profits earned by refiners after global crude oil prices surged following the Russia-Ukraine conflict.
The government reintroduced the tax in March 2026 after crude oil prices climbed amid the US-Israeli war involving Iran.
Windfall taxes and export levies are used to adjust the tax burden on petroleum companies in response to market conditions and changes in prices. The latest notification revises the duties on petrol and diesel exports with effect from October 16.