Manas Dasgupta
NEW DELHI, Oct 31: The Centre on Saturday slashed the export duty on petrol to nil while hiking the levy on export of high speed diesel and aviation turbine fuel (ATF) by ₹3 per litre and 50 paise per litre respectively for the next 15-day period.
There was no change in the existing excise duty rates for petrol and diesel for domestic consumption. Diesel exports would now draw a levy of ₹11.5 for every litre against ₹8.5 per litre it drew in the previous fortnight. ATF would be subject to an export levy of ₹11 for every litre against ₹10.5 for every litre as mandated for the previous fortnight.
The revised duties came into effect on Saturday 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changes mark a shift in the government’s export duty structure for petroleum products, with the levy on petrol being withdrawn even as higher duties are imposed on diesel and aviation fuel.
This means petrol exports will no longer attract the special additional excise duty while 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 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. The changes have been notified by the Department of Revenue under the Ministry of Finance.
The revised levy on diesel assumes significance as India spiked its exports of the liquid vehicular fuel amid a global supply crunch, particularly in Europe. According to data from real-time analytics provider Kpler, India’s diesel exports stood at 700 kilo barrels per day in October, the highest since September 2025.
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.
The government has been conducting a fortnightly review of export levies since March 27, in the backdrop of the conflict in West Asia. These are done based on the average international benchmark prices of crude oil, petrol, diesel and ATF observed since the previous review. This is to ensure the domestic availability of retail fuels by disincentivising exports.