Major government decision on petrol and diesel: tax on petrol increased by Rs 2.50, while export duty on diesel reduced by Rs 7.50..
Export Duty on Petrol and Diesel: The government has adjusted the windfall tax on the export of petrol and diesel. Under a decision taken late Thursday night, the tax on petrol exports has been increased to ₹2.50 per litre. Meanwhile, the duty on diesel exports has been reduced from ₹16 to ₹8.50 per litre. The new rates came into effect on October 16. Following this decision, many are wondering whether petrol and diesel prices in the country will rise, or if diesel might become cheaper. Let’s examine how these changes to the windfall tax on petrol and diesel exports might affect you.
Increase in Tax on Petrol Exports
According to the Central Board of Indirect Taxes and Customs (CBIC), the windfall tax on petrol exports has been raised from ₹0.50 per litre to ₹2.50 per litre, increasing the tax burden on petrol exports. Conversely, the tax on diesel exports has been cut by ₹7.50 per litre—down from the previous rate of ₹16 per litre to ₹8.50 per litre. There has been no change in the duty applicable to the export of Aviation Turbine Fuel (ATF), or jet fuel.
Will Petrol and Diesel Become More Expensive in the Country?
Changes to the export duty on petrol and diesel do not necessarily mean that domestic prices will increase. The government has clarified that there has been no change to the existing duties on petrol and diesel sold for domestic consumption. Consequently, petrol and diesel prices remained stable on Friday morning in cities including Delhi, Mumbai, and Kolkata. Whether or not prices will change in the coming days will depend on the decisions made by oil companies.
Latest Petrol and Diesel Rates in Major Cities
While the government has adjusted the windfall tax on petrol, diesel, and jet fuel, state-run oil companies—HPCL, IOCL, and BPCL—have also released new prices for petrol and diesel this Friday morning. The good news is that there has been no change in the prices of petrol and diesel in major cities across the country today. However, if you are planning to fill up your vehicle's tank, it is worth checking the current rates for a litre of petrol and diesel in your city.
In New Delhi, petrol is priced at ₹102.12 per litre and diesel at ₹95.20 per litre.
In Kolkata, petrol costs ₹113.51 per litre, while diesel is priced at ₹99.82 per litre.
In Mumbai, petrol is available at ₹111.21 per litre and diesel at ₹97.83 per litre.
In Chennai, petrol is priced at ₹107.76 per litre and diesel at ₹99.55 per litre.
In Gurgaon, the rate for petrol is ₹102.97 per litre, and for diesel, it is ₹95.64 per litre.
In Noida, petrol is available at ₹101.96 per litre and diesel at ₹95.44 per litre.
In Bangalore, petrol is priced at ₹111.68 per litre and diesel at ₹99.56 per litre.
Windfall Tax Rates Revised Every 15 Days
Windfall tax rates are reviewed every 15 days. The government adjusts these rates based on fluctuations in the prices of crude oil and petroleum products in the international market. This tax was first imposed on fuel exports in July 2022. It was removed after about two years, but the government reintroduced it following a sharp surge in crude oil prices in March 2026.
Impact of the surge in crude oil prices
The price of crude oil in the international market has reached approximately $95 per barrel. A Reuters report, citing LSEG data on shipping and oil prices, indicates that freight and insurance costs have risen due to the US-Iran and Russia-Ukraine conflicts. Against this backdrop, the government’s latest decision concerns adjustments to the taxes levied on the export of petrol and diesel. For now, there is some relief for domestic consumers: despite these changes, retail prices for petrol and diesel remained unchanged on Friday.
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