From mint · Rituraj Baruah · · 1m
Centre cuts diesel export tax, raises petrol levy amid oil prices
India reduces diesel export tax to ₹8.50/litre while increasing petrol levy to ₹2.50/litre amid rising oil prices.
In brief
India reduces diesel export tax to ₹8.50/litre while increasing petrol levy to ₹2.50/litre amid rising oil prices. India cut diesel export tax to ₹8.50 per litre and raised petrol export tax to ₹2.50 per litre to manage domestic oil supply amid West Asia tensions and rising crude prices. Originally reported by mint.
Tax changes for diesel and petrol
The Centre cut diesel export levy to ₹8.50 per litre from ₹16 per litre and raised petrol export levy to ₹2.50 per litre from ₹0.50.
Why changes were made
The government introduced windfall tax to ensure domestic petroleum availability during West Asia war tensions and rising oil prices.
Oil price impact
Brent crude prices rose 10% in two weeks to $105.5 per barrel amid West Asia tensions.
Export context
India exports petroleum products worth $45 billion annually while importing $123 billion worth of crude oil.
Domestic consumption
India consumed 243 million tonnes of petroleum products in fiscal year 2026, with exports at 61.43 million tonnes.
What matters most
India cut diesel export tax to ₹8.50 per litre and raised petrol export tax to ₹2.50 per litre to manage domestic oil supply amid West Asia tensions and rising crude prices.
