Petrol and diesel prices remained unchanged across India on October 1, 2026, even as the central government reduced the windfall-related levy on exports of diesel and Aviation Turbine Fuel (ATF).

The reduction in export duties may benefit companies exporting petroleum products, but motorists should not expect a corresponding drop at fuel stations. The latest revision applies to export levies and not the taxes applicable to petrol and diesel sold in the domestic retail market.

According to the fuel rates cited for October 1, petrol continues to cost ₹102.12 per litre in Delhi, while diesel is available at ₹95.20 per litre.

At the same time, international crude oil prices remain volatile, keeping attention focused on whether changing global energy costs could eventually influence domestic fuel prices.

Petrol and Diesel Prices Unchanged in Delhi

Oil marketing companies did not announce a change in retail petrol and diesel rates for October 1 in the supplied price data.

In Delhi, petrol continues to be available at ₹102.12 per litre, while diesel costs ₹95.20 per litre.

The cited rates for Port Blair are significantly lower. Petrol is priced at ₹88.66 per litre, while diesel stands at ₹84.56 per litre.

Chittoor in Andhra Pradesh, meanwhile, has considerably higher rates, with petrol quoted at ₹118.34 per litre and diesel at ₹106.06 per litre.

Here is a comparison of the supplied rates:

Based on these quoted locations, Port Blair has the lowest petrol price, while Chittoor has the highest.

Diesel Export Levy Cut by ₹4 Per Litre

Although domestic fuel prices have not changed, the government has reduced the combined levy applicable to diesel exports.

From October 1, the combined Special Additional Excise Duty (SAED) and Road and Infrastructure Cess on exported diesel has been reduced from ₹20 per litre to ₹16 per litre.

This represents a reduction of:

₹20 - ₹16 = ₹4 per litre

The revised rate is applicable for the new fortnightly review period.

The move lowers the tax burden on diesel being exported from India, but it does not automatically change the price motorists pay when buying diesel at a domestic fuel station.

ATF Export Duty Also Reduced

Aviation Turbine Fuel has received an even larger reduction under the latest revision.

The levy on ATF exports has been cut from ₹15 per litre to ₹10.50 per litre.

That represents a reduction of:

₹15 - ₹10.50 = ₹4.50 per litre

The lower levy could improve export economics for refiners selling ATF overseas.

What Changed for Petrol Exports?

There has been no reduction in the export levy applicable to petrol under the latest revision.

The cited duty on petrol exports continues at ₹0.50 per litre.

The changes can therefore be summarised as follows:

These figures relate to the specified export levy framework, not domestic retail fuel taxation.

Will Petrol and Diesel Become Cheaper for Consumers?

The October 1 tax revision does not directly provide a price cut to motorists.

The government has changed the levies applicable to exports of certain petroleum products, while the relevant domestic duties cited in the source remain unchanged.

As a result, reducing the export levy on diesel from ₹20 to ₹16 per litre should not be interpreted as a ₹4 reduction in diesel prices at fuel stations.

Similarly, the ₹4.50 reduction in the ATF export levy does not mean domestic aviation fuel or passenger airfares will automatically become cheaper by a corresponding amount.

For consumers, the key takeaway is straightforward: petrol and diesel retail prices remain unchanged in the supplied October 1 rates.

Why Fuel Prices Differ From One City to Another

Even when oil companies do not announce a broad price revision, petrol and diesel rates can vary considerably between locations.

The final retail price depends on several components, including the base fuel price, central taxation, state-level VAT and other applicable charges.

State taxes are one reason petrol and diesel can be substantially cheaper in one part of India than another.

Transportation and local cost factors can also contribute to variations.

Consumers should therefore check the latest price applicable to their own city rather than relying on a national average.

Crude Oil Prices Remain Volatile

International crude prices are another important factor for India's energy market.

According to the supplied market information, Brent crude was trading around $97.66 per barrel at approximately 5:46 am on Thursday, while West Texas Intermediate (WTI) crude was near $89.93 per barrel.

Brent had strengthened during the previous trading session, while WTI had recorded a marginal decline.

Global crude prices can be influenced by geopolitical developments, production decisions by major oil-producing countries, inventories, economic growth expectations and changes in global demand.

Since India imports a large share of its crude oil requirements, sustained changes in international oil prices can have significant implications for domestic energy costs.

Why Was the Windfall Tax Introduced?

According to the supplied information, the government imposed a windfall-related tax on exports of diesel and ATF from March 27 amid rising tensions in West Asia and a sharp increase in international petroleum-product prices.

The objective was to ensure sufficient availability of petroleum products in the domestic market while addressing unusually high profits that exporters could earn when international prices surged.

The government subsequently continued to review the levy at fortnightly intervals, allowing the rates to be adjusted as market conditions changed.

Petrol exports were later brought within the framework from May 16, according to the supplied details.

Why Does the Government Review the Levy Frequently?

International crude oil and refined-product prices can change rapidly. A fixed export levy can therefore become either too high or too low as global conditions evolve.

Regular reviews allow the government to adjust the tax burden in response to changing international prices and refining margins.

When global prices and export margins are unusually high, a higher levy can capture a portion of the windfall gains. When those margins decline, the levy can be reduced.

The October 1 revision reflects this approach, with the diesel levy falling by ₹4 per litre and the ATF levy dropping by ₹4.50 per litre.

What Should Motorists Know on October 1?

For motorists, the most important development is actually what has not changed.

There is no corresponding reduction in domestic petrol or diesel rates simply because the government has lowered the export levy.

In Delhi, the cited prices remain at ₹102.12 per litre for petrol and ₹95.20 per litre for diesel. Port Blair's cited rates stand at ₹88.66 and ₹84.56 respectively, while Chittoor's petrol and diesel rates are ₹118.34 and ₹106.06 per litre.

Consumers should therefore distinguish between export-tax changes and retail fuel-price revisions. Unless domestic rates are separately revised, the reduction in the windfall-related export levy does not translate directly into cheaper petrol or diesel at the pump.

Disclaimer: Fuel and crude-oil prices mentioned above are based on the supplied market information for October 1, 2026. Retail rates can vary by location and may be revised. Consumers should verify the latest price with their local fuel retailer.