Export duty on diesel slashed to Rs 8.5 per litre from Rs 16 per litre. Levy on ATF remains unchanged at Rs 10.5 per litre
Centre cuts windfall tax on diesel export, raises petrol levy: The Centre on Friday has raised the windfall tax on petrol exports. The move comes amid ongoing geo political tensions in West Asia that have pushed Crude Oil and petroleum product prices higher.
According to a notification issued by the Ministry of Finance, the order issued late Thursday. The increase in petrol export duty and reduction in diesel duty come as the government continues to adjust taxes on fuel exports in response to changes in international crude oil and petroleum product prices. Export duty on petrol hiked from 0.5 rupees to 2.5 rupees per litre. While export duty on diesel slashed to Rs 8.5 per litre from Rs 16 per litre. Levy on ATF remains unchanged at Rs 10.5 per litre.
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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 jumped during the US-Israeli war on Iran.
The export duties are currently reviewed every fortnight and adjusted in line with movements in international crude oil and petroleum product prices.
