Fuel Price Update: Petrol-Diesel 'Tax' Increased, Check New Rates Today

New Delhi: The central government has increased the duty on export of petroleum products. The windfall tax on petrol exports has been increased to Rs 1.50 per liter from September 1, 2026. At the same time, the duty on export of diesel has been increased by Rs 1 per liter. After the implementation of the new rates, government oil marketing companies have released the prices of petrol and diesel on Wednesday, September 2.

The price of one liter petrol without ethanol in Delhi on September 2 is Rs 167.35 per liter. Whereas the price of E5 petrol is Rs 109.24 and the price of E20 i.e. 20 percent ethanol mixed petrol is Rs 102.12 per liter.

How much increased duty on petrol and diesel?

The government has increased the windfall tax on petrol exports by Rs 1.50 per litre. After this the fee has become Rs 1.50 per litre. The duty on export of diesel has been increased by Rs 1 and it now stands at Rs 25 per litre.

However, the increase in these duties will not have a direct impact on the prices of petrol and diesel sold in the domestic market. The government has clarified that there has been no change in the existing rates of excise duty applicable on petrol and diesel consumed within the country.

Will it affect the common man's pocket?

The duties increased by the government will mainly apply to exports of petroleum products. Therefore, it will not have a direct impact on the common consumers buying petrol and diesel in the domestic market.

The government says that the new rates will be applicable on exported petroleum products. These charges will not have a direct impact on petrol and diesel available for domestic sale.

Why did the government increase export duty?

These duties on the export of petroleum products were implemented from March 27, 2026. The government reviews these every fortnight. The duty rates are changed based on the average prices of crude oil, petrol, diesel and aviation turbine fuel (ATF) in the international market.

In the last review on August 15, export duty on petrol was reduced to zero, while duty on diesel was fixed at Rs 24 and ATF at Rs 19.50 per litre. After the new review, the duty on petrol has been increased again by Rs  1.50 per liter and on diesel by Rs 1 per liter.

What changed on the export of ATF?

Duty is also applicable on the export of Aviation Turbine Fuel i.e. ATF. Under the new system, a charge of Rs 19 per liter has been kept on ATF. These rates are reviewed by the government from time to time considering the international market conditions.

Will domestic petrol and diesel prices change?

At present, there has been no direct change in the prices of petrol and diesel in the domestic market due to increase in export duty. According to the government, the objective of the export duty is to maintain adequate availability of petroleum products in the domestic market and to regulate exports amid international market conditions.