India Raises Petrol Export Tax and Cuts Diesel Duty

The Government of India adjusted fuel export duties on October 16, 2026, as part of a fortnightly review process based on international crude oil and petroleum product price fluctuations. The government raised the windfall tax on petrol exports to ₹2.5 per litre, up from ₹0.5 per litre. In a contrasting move, it reduced the export duty on diesel to ₹8.5 per litre from ₹16 per litre.

These taxes were first introduced in July 2022 and withdrawn two years later. They were reintroduced in March 2026 following a surge in crude prices triggered by the US-Israeli war on Iran. The current adjustments reflect the government's ongoing strategy to manage domestic fuel stability and capture windfall profits during periods of global price volatility.