Export duty on petrol reduced to zero, diesel increased by ₹3 per litre

Image for representation purposes. | Photo credit: File

The government on Saturday (October 31, 2026) reduced the export duty on petrol to zero, while increasing the export tax on diesel and aviation turbine fuel (ATF) by ₹ 3 per liter and 50 paise per liter for the next 15 days.

There was no change in the current excise tax rates for gasoline and diesel for domestic consumption.

Diesel exports would now attract a tax of ₹11.5 per liter against the ₹8.5 per liter it was pumping in the previous fortnight.

The ATF would be subject to an export tax of ₹11 per liter as against ₹10.5 per liter as mandated in the previous fortnight.

The revised diesel tax assumes significance as India has sharply increased its exports of liquid vehicle fuel amid a global supply crisis, particularly in Europe.

India’s diesel exports stood at 700 kilo barrels per day in October, the highest since September 2025, according to data from real-time analytics provider Kpler.

In a social media post on Friday (Oct 30, 2026), Sumit Ritolia, manager of modeling and refining at Kpler, added: “India’s diesel exports are expected to fall to 500-550 kbd in November-December as seasonal domestic demand peaks before recovering to 550-600 in Q2 2027. will only contribute later in 2027.

The government has been conducting a fortnightly review of export duties since March 27 against the backdrop of conflict in West Asia. These are done based on the average international reference prices of crude oil, petrol, diesel and ATF observed since the previous review.

This is to ensure domestic availability of retail fuels by taking away from exports.

Published – 31 Oct 2026 16:46 IST