India Raises Petrol Export Duty Fivefold, Cuts Diesel Duty Nearly Half

India raises windfall tax on petrol, cuts duty on diesel

A government order issued late Thursday, October 15, 2026, raised India’s export duty on petrol to ₹2.5 ($0.0263) per litre from ₹0.5 per litre.

The same order cut the duty on diesel exports to ₹8.5 per litre from ₹16 per litre, with the changes effective October 16.

Duties linked to global price movements

The government currently reviews export duties every fortnight and adjusts them in line with movements in international crude oil and petroleum product prices.

The latest changes come after the government reintroduced the tax in March 2026, following a jump in crude prices during the U.S.-Israeli war on Iran.

India first imposed windfall taxes on fuel exports in July 2022 and withdrew them two years later.

The duties therefore remain subject to periodic revision rather than being fixed for a longer period, according to the government’s stated review mechanism.

Source: The Hindu