Centre Raises Petrol Export Windfall Tax to ₹2.50 Per Litre, Cuts Diesel Tax

The Central Government has increased the windfall tax on petrol exports to ₹2.50 per litre while reducing the tax on diesel exports from ₹16 to ₹8.50 per litre. The revised rates came into effect on October 16, 2026.

Export duties on petroleum products are reviewed every two weeks based on changes in international crude oil and fuel prices. The government has made several adjustments in recent months amid global oil price fluctuations and geopolitical tensions.

The windfall tax was first introduced in July 2022 following the Russia–Ukraine war to address unusually high profits earned by oil refiners. It was reintroduced in March 2026 after crude oil prices rose during the conflict involving Iran, the United States and Israel.

The latest changes reflect the government`s ongoing review of fuel export taxes in response to international market conditions.