Govt Hikes Petrol Export Duty to Rs 2.50/Litre, Slashes Diesel Levy to Rs 8.50/Litre

New Delhi, Oct 16 (KNN) India has raised the export duty on petrol fivefold to Rs 2.50 per litre and reduced the levy on diesel exports to Rs 8.50 per litre from Rs 16, according to a government notification.

The revised rates, effective October 16, will remain applicable for the next fortnight as part of the government's periodic review of export duties on petroleum products.

The Special Additional Excise Duty (SAED) on petrol exports has been increased from Rs 0.50 to Rs 2.50 per litre, while the levy on diesel exports has been cut from Rs 16 to Rs 8.50 per litre.

The export duty on aviation turbine fuel (ATF) has been retained at Rs 10.50 per litre. The Road and Infrastructure Cess on exports of petrol, diesel and ATF remains nil.

Duties Reintroduced Amid West Asia Crisis

The export levies were reintroduced on March 27, 2026, amid a surge in international crude oil prices following the US-Israeli war on Iran and concerns over domestic fuel availability.

India had first imposed windfall taxes on fuel exports in July 2022 and withdrew them in 2024.

The duties are intended to discourage refiners from diverting petroleum products to overseas markets when higher international prices make exports more attractive, thereby supporting adequate domestic supplies.

The government reviews the rates every fortnight, taking into account movements in international crude oil and petroleum product prices.

No Change In Domestic Fuel Duties

The revised levies apply only to exports of the specified petroleum products. There is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption.

The latest revision follows the October 1 review, when the diesel export duty was reduced from Rs 20 to Rs 16 per litre, while the petrol levy remained unchanged at Rs 0.50 per litre.

(KNN Bureau)