Petrol, Diesel, ATF Export Duty Cut: Govt Slashes Levies on Fuel Exports

The Central government cut export duties on petrol, diesel and aviation turbine fuel (ATF) from Saturday, setting the petrol levy at zero and cutting charges on diesel and ATF. The government reduced the petrol export duty to nil from Rs 3.5 per litre, cut the total levy on diesel to Rs 24 per litre from Rs 25.5, and lowered the ATF export duty to Rs 19.5 per litre from Rs 22, the order showed. The revisions apply to petroleum products cleared for export and the Finance Ministry has earlier said it does not affect excise rates on fuel cleared for domestic consumption. The move comes less than two weeks after the Centre raised export levies on all three fuels.

On August 3, petrol export duty was raised to Rs 3.5 per litre from Rs 2.5, diesel’s levy was increased to Rs 25.5 from Rs 15.5, while ATF duty was lifted to Rs 22 from Rs 14.5. The total diesel levy comprised two duties — Special Additional Excise Duty and Road and Infrastructure Cess — rather than SAED alone. The Centre reviews the export levies every fortnight and the rates are determined using the average international prices of crude oil, petrol, diesel and ATF since the previous review.

The duties can be imposed through SAED, RIC or a combination of the two, depending on the product and the rates notified for each review period. The current export-duty regime was introduced in the current export duty framework on March 27, 2026, amid a spike in international crude and refined fuel prices linked to the West Asia conflict. The international prices of crude oil and refined fuels had risen during the West Asia conflict, creating an incentive for refineries to sell petroleum products in overseas markets. Hence, export duties were imposed to ensure domestic availability of diesel and ATF.

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