Business · Energy & Commodities · 3 hrs ago
India raises petrol export tax and cuts diesel export duty
India is raising the tax on petrol exports and cutting the duty on diesel exports from October 16.
The new petrol duty is ₹2.5 per litre, up from ₹0.5, while the diesel duty falls to ₹8.5 from ₹16 per litre.
The measures apply to fuel exports from India.
India first introduced these windfall taxes in July 2022, then withdrew them two years later.
The government brought them back in March 2026 after crude prices rose during the US-Israeli war on Iran.
The duties are reviewed every two weeks and adjusted in response to changes in international crude and fuel prices.
The new rates take effect on October 16; the government’s next reviews may change them again.
India raised the windfall tax on petrol exports and cut the export duty on diesel, according to a government order.
The changes take effect on October 16.
The petrol export duty rose to ₹2.5 per litre from ₹0.5 per litre.
The diesel export duty fell to ₹8.5 per litre from ₹16 per litre.
India reintroduced fuel export taxes in March 2026 after crude prices rose during the US-Israeli war on Iran.
- Who
- The Indian government.
- What
- It raised the petrol export duty and cut the diesel export duty.
- When
- Effective October 16, 2026.
- Where
- India.
- Why
- The article says export duties are reviewed every fortnight and adjusted in line with international crude oil and petroleum product prices. It does not state a specific reason for this change.
This story does not have two clearly opposing sides.
India first imposed windfall taxes on fuel exports.
India withdrew the taxes.
The government reintroduced the tax after crude prices jumped during the US-Israeli war on Iran.
The revised petrol and diesel export duties took effect.
- Petrol export duty
- ₹2.5 per litre, up from ₹0.5
- Diesel export duty
- ₹8.5 per litre, down from ₹16
- Effective date
- October 16, 2026
- Initial imposition
- July 2022
- Reintroduction
- March 2026