- The government cut export levies on petrol, diesel, and aviation turbine fuel (ATF)
- Diesel export levy reduced by Rs 5 per litre, from Rs 25 to Rs 20 per litre
- Petrol export duty lowered from Rs 1.5 to Rs 0.5 per litre, ATF from Rs 19 to Rs 15
The government has cut export levies on petrol, diesel and aviation turbine fuel (ATF), with the duty on diesel lowered by Rs 5 per litre, according to notifications issued by the Finance Ministry on Wednesday.
Under the revised rates, effective September 16, the export levy on petrol has been reduced to Rs 0.5 per litre from Rs 1.5 per litre, while the levy on diesel has been cut to Rs 20 per litre from Rs 25 per litre. The duty on ATF has been lowered to Rs 15 per litre from Rs 19 per litre.
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For diesel, the earlier Rs 25-per-litre levy comprised Rs 24 per litre of Special Additional Excise Duty (SAED) and Rs 1 per litre of Road and Infrastructure Cess (RIC). Under the latest revision, SAED has been reduced to Rs 20 per litre, while the RIC has been brought down to nil.
The rates are reviewed every fortnight based on international prices of crude oil and petroleum products. The previous revision, effective September 1, had raised the overall levy on diesel to Rs 25 per litre and set the petrol and ATF levies at Rs 1.5 per litre and Rs 19 per litre, respectively.
The export levies were introduced from March 27, 2026, amid the West Asia crisis, as the government sought to discourage exports and maintain adequate domestic supplies of petroleum products. The latest revision marks a reversal of the increase in diesel's levy announced earlier this month.
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India is also a significant exporter of refined petroleum products. According to the Petroleum Planning & Analysis Cell (PPAC), petroleum exports accounted for 22.9% of India's petroleum, oil and lubricants (POL) production and 10.8% of the country's gross exports in June 2026.
According to ANI, the latest duty changes apply to exports and do not alter the existing excise duty rates on petrol and diesel meant for domestic consumption. PPAC data show the retail price of petrol in Delhi at Rs 102.12 per litre and diesel at Rs 95.20 per litre as of September 16.
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