New Delhi, October 16, 2026 (Yes Punjab News)
The government has raised the export duty on petrol to Rs 2.5 per litre from Rs 0.5 per litre while sharply reducing the levy on diesel exports to Rs 8.5 per litre from Rs 16 per litre, effective Friday.
According to a Finance Ministry notification, the latest changes form part of the government’s fortnightly review of export duties on petroleum products, which are adjusted in response to movements in international crude oil and refined product prices.
The petrol export duty has been increased by Rs 2 per litre, with the levy now standing at Rs 2.5 per litre. In contrast, the duty on diesel exports has been reduced by Rs 7.5 per litre to Rs 8.5 per litre.
The latest revision comes amid continued volatility in international oil markets and geopolitical tensions, which have prompted the government to make several changes to petroleum export levies in recent months.
In September, the government had cut the duty on petrol exports to Rs 0.5 per litre. In the revision effective September 1, the export levy on diesel was reduced to Rs 1 per litre from Rs 3 per litre, while the windfall tax on diesel exports was lowered to Rs 19 per litre from Rs 24 per litre.
The government had taken a different approach in August, raising the petrol export duty to Rs 3.5 per litre from Rs 2.5 per litre. The total levy on diesel exports was increased to Rs 25.5 per litre from Rs 15.5 per litre, while the export levy on aviation turbine fuel (ATF) was raised to Rs 22 per litre from Rs 14.5 per litre.
India first introduced windfall taxes on fuel exports in July 2022 to capture what the government described as super-normal profits earned by refiners amid a surge in global crude prices following the Russia-Ukraine conflict.
The tax was reintroduced in March 2026 after crude oil prices rose sharply during the US-Israeli conflict with Iran.
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