Petrol Export Duty Raised to INR 2.5 Per Litre, Diesel Duty Cut to INR 8.5
The government has raised the windfall tax on petrol exports to Rs 2.5 per litre from Rs 0.5 per litre while reducing the export duty on diesel to Rs 8.5 per litre from Rs 16 per litre. The revised duties came into effect on Friday, October 16, according to a Finance Ministry notification.
New Delhi, October 16: The government has raised the windfall tax on exports of petrol to Rs 2.5 per litre and cut the duty on diesel, effective from Friday. As per the Finance Ministry notification, the export duty on petrol was raised to Rs 2.5 per litre from Rs 0.5 per litre. While the duty on diesel exports was cut to Rs 8.5 per litre from Rs 16 per litre, effective October 16, according to the ministry's order.
In addition, the export duties are reviewed every fortnight and adjusted in line with movements in international crude oil and petroleum product prices. The latest revision follows several changes to petroleum export duties in recent months amid volatility in international oil prices and geopolitical tensions. Government Imposes INR 3 Per Litre Excise Duty on Petrol Exports, Cuts Diesel Duty to INR 16.5 Per Litre and ATF Duty to INR 16 Per Litre.
In September, the government had reduced the windfall tax and export levies on petrol, diesel and aviation turbine fuel (ATF) as part of its fortnightly review. The duty on petrol exports was cut to Rs 0.5 per litre, comprising Special Additional Excise Duty (SAED) of Rs 0.5 per litre.
In the previous revision effective September 1, the government had reduced the export levy on diesel to Rs 1 per litre from Rs 3 per litre and cut the windfall tax on diesel exports to Rs 19 per litre from Rs 24 per litre.
In August, the government had raised the export duty on petrol to Rs 3.5 per litre from Rs 2.5 per litre. The total duty on diesel was increased to Rs 25.5 per litre from Rs 15.5 per litre, while the ATF export levy was raised to Rs 22 per litre from Rs 14.5 per litre. India Hikes Windfall Tax on Petrol, Diesel and ATF Exports Amid Global Market Volatility.
The government first imposed windfall taxes on fuel exports in July 2022 to capture super-normal profits earned by refiners when global crude prices surged following the Russia-Ukraine conflict. Earlier, the government reintroduced the tax in March 2026 after crude prices jumped during the US-Israeli war on Iran.
(The above story first appeared on LatestLY on Oct 16, 2026 10:10 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).