The Centre has revised export duties on petroleum products, increasing levies on petrol and diesel exports while marginally reducing the duty on aviation turbine fuel (ATF), with the new rates taking effect from September 1.
Under the latest fortnightly revision, the export levy on diesel has been increased to ₹25 per litre from ₹24 per litre, while a ₹1.50-per-litre levy has been reintroduced on petrol exports, up from nil in the previous revision.
At the same time, the export duty on ATF has been reduced to ₹19 per litre from ₹19.50 per litre.
Petrol Export Levy Reintroduced
The government has imposed a ₹1.50-per-litre Special Additional Excise Duty (SAED) on petrol exports. The levy was reduced to zero during the previous fortnightly review on August 15.
The latest move reverses that relief for petrol exporters as the government continues to adjust export duties in response to international crude and petroleum product prices.
Diesel Duty Raised
For diesel, the total export levy has been raised by ₹1 per litre to ₹25. Of this, ₹24 per litre will be collected as SAED, while the remaining ₹1 will be charged as Road and Infrastructure Cess (RIC).
The increase follows the August 15 revision, when the diesel export levy was lowered to ₹24 per litre.
ATF Levy Cut
In contrast, the Centre has provided a marginal relief to aviation fuel exporters by reducing the ATF export levy by 50 paise to ₹19 per litre from ₹19.50 per litre.
The entire ATF levy will be collected as SAED.
No Change in Domestic Fuel Excise Duty
The latest changes are applicable to petroleum product exports and do not alter the existing central excise duty rates on petrol and diesel sold in the domestic market.
The government reviews these export levies every fortnight, taking into account international prices of crude oil and petroleum products. The export duties were introduced in March 2026 amid concerns over domestic fuel availability and incentives for refiners to divert supplies to overseas markets.
Key Changes From September 1
- Petrol export levy: ₹1.50/litre, up from nil
- Diesel export levy: ₹25/litre, up from ₹24/litre
- ATF export levy: ₹19/litre, down from ₹19.50/litre
- Effective date: September 1, 2026
- Domestic petrol and diesel excise: No change
The latest revision represents another adjustment to India’s petroleum export tax structure, with higher levies on petrol and diesel exports offset by a small reduction in the duty applicable to ATF shipments.