Government Raises Petrol Export Duty To ₹2.5 Per Litre, Cuts Diesel Levy

The government has raised the export duty on petrol to ₹2.5 per litre and reduced the levy on diesel to ₹8.5 per litre, with the revised rates taking effect on Friday, October 16.

According to a Finance Ministry notification, the petrol export duty has increased from ₹0.5 per litre, while the duty on diesel exports has fallen from ₹16 per litre.

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

The latest revision follows several changes to export levies in recent months amid volatile global oil prices and geopolitical tensions.

In September, the government reduced duties on petrol, diesel and aviation turbine fuel (ATF). It lowered the petrol export duty to ₹0.5 per litre.

In an earlier revision effective September 1, the government reduced the diesel export levy to ₹1 per litre from ₹3 per litre.

However, the windfall tax on diesel exports was cut to ₹19 per litre from ₹24 per litre.

The government had raised export duties in August. It increased the petrol levy to ₹3.5 per litre from ₹2.5 per litre and raised the total duty on diesel to ₹25.5 per litre from ₹15.5 per litre. The export levy on ATF also rose to ₹22 per litre from ₹14.5 per litre.

The Centre first introduced windfall taxes on fuel exports in July 2022 to capture exceptional profits earned by refiners after global crude oil prices surged following the Russia-Ukraine conflict.

The government reintroduced the tax in March 2026 after crude prices rose sharply during the US-Israeli war on Iran. The latest changes reflect its continuing efforts to adjust export duties in line with changing international market conditions.

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