India revises fuel export duties, raises petrol tax and cuts diesel levy
The revised levies follow the government’s return to taxing fuel exports in March 2026 after crude prices surged during the US-Israeli war on Iran
India's government has revised fuel export duties, raising the tax on petrol and lowering the levy on diesel, according to an order issued on Thursday. The export duty on petrol has been increased to ₹2.5 ($0.0263) per litre, up from the previous 0.5 rupees per litre. Meanwhile, the duty on diesel exports has been reduced to ₹8.5 per litre, down from ₹16 per litre, effective October 16.
India initially imposed windfall taxes on fuel exports in July 2022 but withdrew them two years later. The taxes were reintroduced in March 2026 following a surge in crude prices due to the US-Israeli conflict in Iran. The government reviews the export duties every fortnight and adjusts them according to changes in international crude oil and petroleum product prices.
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