Government hikes petrol export duty to Rs 2.5 per litre, reduces diesel levy to Rs 8.5 per litre

Key facts

• The government raised the export duty on petrol fivefold to Rs 2.5 per litre from Rs 0.5 and cut the diesel export duty to Rs 8.5 per litre from Rs 16, effective October 16.
• The export duty on aviation turbine fuel (ATF) remains unchanged at Rs 10.5 per litre, per a finance ministry notification issued on Friday.
• The revised rates cover the Special Additional Excise Duty (SAED), with no road and infrastructure cess applicable on exports of petrol, diesel and ATF.
• Export duties on the three petroleum products are reviewed every fortnight based on average international prices of crude oil and the respective fuels.
• The revised export duties do not affect existing excise duty rates on petrol and diesel sold for domestic consumption.
• India introduced windfall taxes on fuel exports in July 2022, withdrew them two years later, and reinstated them in March 2026 amid the US-Israeli war on Iran.
• The government imposed export duties on diesel and ATF on March 27, 2026, and introduced the levy on petrol exports from May 16, 2026.