India raises export levy on petrol, cuts it on diesel for the fortnight from October 16

The government has revised the levies on exports of petrol and diesel, raising the one on petrol and cutting the one on diesel. The new rates apply for the fortnight beginning October 16, according to Greater Kashmir, which carried a PTI report and says the Finance Ministry issued a notification confirming the changes. ThePrint cites a circular issued on Thursday, October 15.

The new rates

Both reports give the same per-litre figures:

• Petrol: up from Rs 0.5 to Rs 2.5, a rise of Rs 2, which ThePrint describes as five times the earlier rate.
• Diesel: down from Rs 16 to Rs 8.5, a cut of Rs 7.5, or about 47%. Greater Kashmir says this figure covers the special additional excise duty together with the road and infrastructure cess.
• Aviation turbine fuel (ATF): unchanged at Rs 10.5.

Both reports say excise duty on petrol and diesel sold in the domestic market is unchanged.

Why the levies exist

According to Greater Kashmir, the export duty on diesel and ATF was imposed on March 27, 2026, amid rising tensions in West Asia, and has been revised every fortnight since. The levy on petrol exports began on May 16, 2026. ThePrint reports that the levies were introduced on March 27 to discourage exports and protect domestic fuel supply during the West Asia crisis.

Greater Kashmir says the aim is to increase fuel availability at home and to stop exporters profiting from the gap between domestic and international prices, since global crude prices have risen since the conflict began. ThePrint says the rates are reviewed every fortnight in line with international crude and refined fuel prices.

What the reports do not say

Neither report explains why petrol was raised and diesel lowered in this particular fortnight. ThePrint does not use the term windfall tax and calls the measures export levies. Neither report gives a notification number or a legal citation. The rates are set only for the fortnight starting October 16, and the reports say they are reviewed at that interval. Greater Kashmir adds that its article does not give the reasons for the specific changes to the diesel, petrol or ATF rates this time.