India scraps petrol export duty, raises diesel and jet-fuel levies
India has scrapped the export duty on petrol and raised the levies on diesel and jet-fuel exports, in the latest fortnightly reset of its windfall tax on fuel. The changes were announced through Finance Ministry notifications on Saturday, 31 October 2026, and took effect the same day.
Petrol exports will now attract no export duty at all, down from Rs 2.50 a litre. The duty on diesel exports rises to Rs 11.50 a litre, up Rs 3 from Rs 8.50, while the levy on aviation turbine fuel (ATF) — the fuel planes use — goes up by 50 paise to Rs 11 a litre, from Rs 10.50.
The levies only apply to fuel sold abroad. The Finance Ministry said duty rates on petrol and diesel sold inside India are unchanged, so the reset does not directly change what drivers pay at Indian pumps. The export levies were brought back in March 2026, when tensions in the Middle East pushed up world oil prices, to discourage refiners from sending fuel abroad when export prices were higher than at home. The latest change partly reverses October’s adjustment, when the petrol levy was raised from 50 paise to Rs 2.50 a litre and the diesel levy was cut from Rs 16 to Rs 8.50.
Why it matters
The split decision shows the government is treating each fuel differently as world prices move. Removing the petrol duty eases the cost for refiners selling petrol overseas, while the higher diesel and jet-fuel levies take a bigger share of export earnings on those fuels. The government reviews the rates every two weeks in response to movements in international crude oil and refined product prices, so the balance between keeping fuel at home and earning from exports is adjusted regularly.
What happens next
The new rates apply for the next fortnight, until the next review in mid-November. Refiners and traders will watch world crude and fuel prices — and the next review — to see whether the petrol exemption lasts or the diesel levy moves again.
This article is for general information and education only. It is not legal or financial advice.
Sources
- https://www.bizzbuzz.news/industry/energy/windfall-tax-reset-petrol-exports-exempt-diesel-and-atf-duties-increased-1413288 (BizzBuzz, 31 October 2026)
- https://khelja.in/windfall-tax-hiked-on-diesel-atf-exports-from-oct-31-petrol-export-duty-cut-to-zero.htm (Khel Ja, 31 October 2026)
- https://www.nationpress.com/business/petrol-export-duty-axed-diesel-atf-levies-hiked (Nation Press, 31 October 2026)
