Petrol export duty raised to Rs 2.5/litre, diesel duty cut to Rs 8.5
Why in the news
The Finance Ministry revised export duties on fuels with effect from October 16, 2026, increasing the levy on petrol and reducing it on diesel, while leaving aviation turbine fuel (ATF) untouched.
Key facts
- Petrol: export duty raised five-fold to Rs 2.5 a litre.
- Diesel: export duty almost halved to Rs 8.5 a litre.
- ATF: no change, at Rs 10.5 a litre.
- Fortnightly review: rates track average global prices of crude, petrol, diesel and ATF since the previous review (last done on October 1, 2026).
- Domestic excise duty on petrol and diesel remains the same.
| Product | Old rate (per litre) | New rate (per litre) |
|---|---|---|
| Petrol | Rs 0.50 | Rs 2.5 |
| Diesel | Rs 16 | Rs 8.5 |
| ATF | Rs 10.5 | Rs 10.5 |
About the windfall-type export levy
India first levied windfall taxes on fuel exports in July 2022 and removed them roughly two years later. The levy was brought back in March 2026 after crude prices surged during the US-Israeli war on Iran.
Exam angle
- Export duty is a customs levy; excise duty applies to domestic consumption.
- Windfall taxes were first imposed in July 2022 and reintroduced in March 2026.
- Revisions happen every two weeks, linked to international prices.