India has raised the windfall tax on exports of petrol and cut the duty on diesel, according to a government order issued late Thursday.

Key Changes in Export Duties

  • The export duty on petrol has been increased to ₹2.5 ($0.0263) per litre from ₹0.5 per litre.
  • The duty on diesel exports has been reduced to ₹8.5 per litre from ₹16 per litre.
  • These changes are effective from October 16, 2026.

Background

India first imposed windfall taxes on fuel exports in July 2022 and withdrew them two years later. The government reintroduced the tax in March 2026 after crude prices surged during the US-Israeli war on Iran.