India Raises Petrol Export Tax, Cuts Diesel Levy in Latest Windfall Duty Revision
What Happened
India has increased the windfall tax on petrol exports to ₹2.5 per litre from ₹0.5 per litre, while reducing the duty on diesel exports to ₹8.5 per litre from ₹16 per litre, effective 16 October 2026, according to a government order. The revisions are part of the fortnightly review mechanism that links export duties to movements in global crude oil and petroleum product prices. India reintroduced these export levies in March 2026 after crude prices surged.
Key Takeaways
The changes affect fuel exports rather than domestic retail fuel sales. The move reflects the government's effort to calibrate export incentives and revenue collection in response to changing international oil market conditions.