Centre raises export duties on diesel and ATF, scraps petrol levy for next fortnight

The Centre has raised export duties on diesel and aviation turbine fuel (ATF), while removing the levy on petrol shipments abroad, as it continues to adjust taxes on petroleum product exports amid volatility in global energy markets.

Under the revised rates, the duty on diesel exports has been increased by ₹3 per litre to ₹11.50 from ₹8.50. The levy on ATF has gone up by 50 paise to ₹11 per litre from ₹10.50. In contrast, the ₹2.50-per-litre duty on petrol exports has been withdrawn, bringing it down to nil.

The Finance Ministry notified the changes on October 31, with the new rates coming into effect from the same day and remaining applicable for the next fortnight.

Domestic fuel duties remain unchanged

The revision applies to petroleum products cleared for export and does not alter the existing excise duty rates on petrol and diesel meant for domestic consumption.

The government has clarified that there is no change in the duties applicable to petrol and diesel sold in the domestic market. The latest decision, therefore, concerns export levies rather than the taxes charged on fuel supplied to consumers in India.

Fortnightly reviews linked to global prices

The export levies were introduced on March 27, 2026, for diesel and ATF, against the backdrop of the West Asia crisis. The duty on petrol exports was subsequently introduced on May 16.

The measures were intended to discourage overseas sales and ensure adequate availability of petroleum products within the country as the conflict heightened concerns over energy supplies and pushed up international prices.

Since their introduction, the rates have been reviewed and revised every fortnight. The government determines the levies based on average international prices of crude oil, petrol, diesel and ATF recorded during the period following the previous review. The last revision before the latest notification took effect on October 16.

The export levies comprise special additional excise duty (SAED) and, in the case of diesel, the applicable road and infrastructure cess. The government uses these duties to regulate overseas shipments and balance exporters' interests with domestic fuel requirements.

India's refiners are significant exporters of petroleum products. The periodic changes in export duties are aimed at managing the flow of these products to overseas markets while ensuring that domestic supplies are not adversely affected by fluctuations in global prices.