Foreign: India on Monday raised export duty on fuel, designed to ensure adequate domestic supply and boost state coffers at a time when prices remain volatile due to the Middle East conflict, according to a government order.
According to Reuters published on August 3, 2026, the Indian government said the export duty on petrol has been raised from 2.5 rupees to 3.5 rupees per litre, effective immediately.
The total export duty on diesel has been raised to 25.5 rupees per litre through a combination of two levies from 15.5 rupees two weeks ago.
The duty on aviation fuel has been set at 22 The rupee per liter rose from 14.5 rupees on Monday.
India first imposed a profit tax in July 2022 to capture windfall profits from rising oil prices, collecting 250 billion rupees ($2.62 billion) in 2022. Total collections fell to 130 billion rupees in 2023-24. The tax was repealed in December 2024 but was reintroduced in March 2026 after oil prices surged during the US-Israeli war on Iran.
Oil prices have been volatile since the last tax revision two weeks ago. Commodity prices fell more than 5% on Monday after US President Donald Trump postponed new strikes on Iran, hoping to conclude a quick deal.
Editor: Nay Tola
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