The Centre has scrapped the export duty on petrol while increasing the special additional excise duty (SAED) on diesel and aviation turbine fuel (ATF), according to fresh notifications issued by the Ministry of Finance. Under the revised rates, petrol exports will no longer attract the levy, while the duty on diesel exports has been raised to Rs 11.5 per litre and that on ATF to Rs 11 per litre.
The revised duties came into effect on October 31, following their publication in the Official Gazette. The latest changes mark a shift in the government’s export duty structure for petroleum products, with the levy on petrol being withdrawn even as higher duties are imposed on diesel and aviation fuel.
Petrol export duty brought down to zero, diesel levy raised
Under the latest notification, the SAED on petrol exports has been reduced from Rs 2.5 per litre to nil. This means petrol exports will no longer attract the special additional excise duty. However, the government has increased the levy on high-speed diesel exports from Rs 8.5 per litre to Rs 11.5 per litre, marking a hike of Rs 3 per litre. The changes have been notified by the Department of Revenue under the Ministry of Finance. The revised rates took effect from the date of publication of the notifications, October 31.
ATF export duty increased to Rs 11 per litre
The Centre has also raised the special additional excise duty on aviation turbine fuel exports. According to Notification No. 56/2026-Central Excise, the levy on ATF has been increased from Rs 10.5 per litre to Rs 11 per litre. With this revision, the government has removed the export duty on petrol while increasing the applicable levies on both diesel and aviation turbine fuel.
Why did the govt introduce export duties on petroleum products?
The Centre introduced special export levies on petrol, diesel and aviation turbine fuel on March 27, 2026, amid the escalating West Asia crisis and growing uncertainty over international energy supplies. The primary objective was to protect domestic availability of petroleum products by discouraging excessive exports at a time when fluctuations in global energy prices and supply disruptions had raised concerns about supplies in the Indian market. By imposing duties on exports, the government sought to ensure that petroleum products remained sufficiently available for domestic consumption rather than being diverted to overseas markets.
Govt reviews export duties every fortnight
The export duty structure has not remained unchanged since its introduction. The Centre has been reviewing the applicable rates every 15 days, taking into account average international prices of crude oil, petrol, diesel and aviation turbine fuel during the period following the previous assessment.ย These periodic reviews have resulted in multiple changes to the duties, depending on movements in international energy prices and prevailing market conditions.ย The previous revision, which came into force on October 16, had fixed the export levy at Rs 2.5 per litre for petrol, Rs 8.5 per litre for diesel and Rs 10.5 per litre for ATF.
(With inputs from ANI)
Also Read:ย
Delhi slashes VAT on jet fuel from 25% to 7% in big relief for airlines, passengers