India raises petrol export tax, slashes diesel duty to Rs 8.5 per litre

October 16, 2026

India has raised the petrol export duty to Rs 2.50 per litre from Rs 0.50, while cutting the diesel levy to Rs 8.50 from Rs 16 per litre, effective October 16

India has raised the export duty on petrol fivefold and sharply cut the levy on diesel, with the revised rates taking effect on Friday, according to a government notification.

The duty on petrol exports has been increased to Rs 2.50 per litre from Rs 0.50 per litre. The levy on diesel exports has been reduced to Rs 8.50 per litre from Rs 16 per litre.

The changes come as the government continues to adjust fuel export duties following the surge in crude oil prices triggered by the US-Israeli war on Iran.

Why India is revising fuel export duties

India reintroduced export duties on petroleum products in March 2026 after withdrawing windfall taxes in 2024. The levies were brought back amid rising international oil prices and concerns over domestic fuel availability.

The duties are intended to discourage refiners from diverting petrol and diesel to overseas markets when international prices make exports more attractive, helping ensure adequate domestic supplies.

The latest revision follows an earlier change effective October 1, when the government reduced the diesel export duty to Rs 16 per litre from Rs 20 per litre while keeping the petrol levy unchanged at Rs 0.50 per litre.

The government reviews export duties every fortnight and adjusts them in response to movements in international crude oil and petroleum product prices.