New Delhi: The Centre has changed the windfall tax on fuel exports once again. Under an order issued late on Thursday, 15 October 2026, the export duty on petrol goes up to Rs 2.5 a litre from Rs 0.5. The duty on diesel exports comes down to Rs 8.5 a litre from Rs 16. The new rates apply from Friday, 16 October.
The duty on aviation turbine fuel (ATF) sent abroad stays at Rs 10.5 a litre. The Finance Ministry also said there is no change in the taxes on petrol and diesel sold inside India. Reuters, The Hindu and PTI reported the same figures.
Table of Contents
Windfall tax revision: the key numbers
- Petrol exports: Rs 2.5 a litre, up from Rs 0.5. That is five times the old rate.
- Diesel exports: Rs 8.5 a litre, down from Rs 16. That is a cut of Rs 7.5 a litre, close to half.
- ATF exports: unchanged at Rs 10.5 a litre.
- Petrol and diesel for domestic sale: no change in duty.
- Period: a fifteen day window starting 16 October 2026, as reported by The Hindu.
What is a windfall tax on fuel exports?
A windfall is a sudden, unplanned gain. When world oil prices jump, Indian refiners can earn far more by selling petrol, diesel or jet fuel to foreign buyers than by selling it at home. A windfall tax takes a part of that extra gain for the government.
In India this levy is charged as a Special Additional Excise Duty, or SAED, along with the road and infrastructure cess, according to the PTI report. The aim, as the government has explained, is to keep enough fuel inside India and to stop exporters from making unfair profits from the gap between world and local prices.
Why has petrol gone up and diesel come down?
The duties are not fixed for long. Since 27 March 2026 the government has reviewed them every fortnight. The Hindu reported that each review uses the average international benchmark prices of crude oil, petrol, diesel and ATF seen since the last review. So one fuel’s duty can rise while another’s falls.
The order itself did not give a separate reason for raising the petrol duty while lowering the diesel duty, India Today noted. What is clear is the direction. Exporters of diesel will pay Rs 7.5 less on every litre they ship, while exporters of petrol will pay Rs 2 more on every litre.
Will prices at your local petrol pump change?
Not because of this order. The changes apply only to fuel exports. The Finance Ministry said the duty on petrol and diesel cleared for use inside India is unchanged. Firstpost also pointed out that the revision does not, by itself, mean pump prices of petrol will rise or diesel prices will fall.
How the windfall tax came back: a short timeline
- July 2022: India first put windfall taxes on fuel exports, when high world energy prices let refiners earn bigger margins abroad.
- Two years later: the taxes were withdrawn.
- February 2026: the West Asia conflict began and disrupted world energy supply, according to NDTV Profit.
- 27 March 2026: the government put export duties on diesel and ATF, with fortnightly reviews.
- 16 May 2026: a levy on petrol exports was added, as per the PTI report.
- 1 October 2026: the diesel export duty was cut to Rs 16 from Rs 20 a litre, while petrol stayed at Rs 0.5, Firstpost reported.
- 16 October 2026: petrol raised to Rs 2.5, diesel cut to Rs 8.5, ATF kept at Rs 10.5.
The bigger oil picture
These changes come while world oil prices stay high. NDTV Profit reported that Brent crude, the global benchmark, had stayed above 100 dollars a barrel for seven days and was trading near 105 dollars on Friday. It touched a record of about 126 dollars a barrel in April. The conflict has squeezed shipping through the Strait of Hormuz, a key route for Gulf oil.
The International Monetary Fund flagged the same risk this week. In its October 2026 Regional Economic Outlook for Asia and the Pacific, reported by The Times of India, the IMF said a long conflict in the Middle East could keep energy prices high. It noted that refined products such as diesel and jet fuel had seen sharper price rises than crude itself. The IMF advised targeted, time bound help for poor households rather than broad fuel subsidies.
Trade data released on Thursday shows how big oil is in India’s accounts. According to Commerce Department quick estimates reported by The Hindu BusinessLine, goods exports rose 23.04 per cent in September 2026 to 44.40 billion dollars, with petroleum products among the sectors that led the growth. Crude oil imports rose 30.76 per cent to 18.34 billion dollars, and the trade deficit for the month was 30.21 billion dollars.
Who feels the change?
The main effect falls on refiners that sell fuel overseas. A lower diesel duty makes diesel exports more attractive than they were last fortnight. A higher petrol duty does the opposite for petrol. For ordinary buyers, the stated goal is steady supply at home.
Oil has been a big theme in recent economic news. Our report on the RBI dollar window for oil companies explains how the central bank stepped in to ease pressure on the rupee. Our story on September retail inflation at 5.54 per cent shows how prices are moving for households. If you are weighing fuel costs for your own vehicle, read our guide on the difference between petrol, diesel and electric cars.
What to watch next
Because the rates run for fifteen days from 16 October, the next review is due at the end of the month. If Brent stays above 100 dollars, or if the gap between world and local fuel prices widens again, the duties could move once more.
FAQ
What is the new windfall tax on petrol exports?
Rs 2.5 a litre from 16 October 2026, up from Rs 0.5 a litre.
What is the new export duty on diesel?
Rs 8.5 a litre, down from Rs 16 a litre. The ATF export duty stays at Rs 10.5 a litre.
Does this change the price of petrol at the pump?
No. The order applies only to exports. The duty on petrol and diesel sold in India is unchanged.
Sources
- Reuters via The Hindu BusinessLine, 16 October 2026: government order issued late Thursday; petrol export duty Rs 2.5 from Rs 0.5, diesel Rs 8.5 from Rs 16; tax history since July 2022; fortnightly reviews.
- The Hindu, 16 October 2026: fortnightly review since 27 March; ATF unchanged at Rs 10.5; fifteen day period from 16 October; no change for domestic fuel.
- The New Indian Express and PTI via Deccan Herald, 16 October 2026: SAED with road and infrastructure cess; petrol levy introduced from 16 May; Finance Ministry notification; aims of the levy.
- India Today, 16 October 2026: fivefold rise for petrol, Rs 7.5 cut for diesel; order gave no separate reason.
- Firstpost, 16 October 2026: 1 October revision of diesel duty from Rs 20 to Rs 16; no automatic effect on pump prices.
- NDTV Profit, 16 October 2026: Brent near 105 dollars, record near 126 dollars in April, conflict since February 2026.
- The Times of India, 16 October 2026: IMF Regional Economic Outlook for Asia and the Pacific, October 2026.
- The Hindu BusinessLine, 15 to 16 October 2026: September 2026 trade data from Commerce Department quick estimates.