Centre scraps petrol export duty, hikes diesel and ATF levies

The Centre has removed the special additional excise duty on petrol exports while increasing export levies on diesel and aviation turbine fuel (ATF), according to notifications issued by the Ministry of Finance on Saturday.Under the revised rates, petrol exports will attract no export duty, compared to the earlier levy of Rs 2.50 per litre.
Meanwhile, the export duty on diesel has been increased from Rs 8.50 to Rs 11.50 per litre. The levy on aviation turbine fuel (ATF) has also been raised from Rs 10.50 to Rs 11 per litre.The revised rates are part of the government's fortnightly review of fuel export duties, which takes into account fluctuations in international crude oil and refined petroleum product prices.
The latest revision partially reverses the October adjustment, when the government had raised the export levy on petrol from Rs 0.50 to Rs 2.50 per litre while reducing the duty on diesel from Rs 16 to Rs 8.50 per litre.
Fuel export duties have undergone several revisions in recent months as the government seeks to balance domestic fuel availability with changing international market conditions.The export levies were reintroduced in March 2026 following heightened geopolitical tensions in the Middle East, which pushed up global crude oil prices and disrupted established energy supply routes.The government had said the measures were aimed at ensuring adequate domestic fuel supplies by discouraging refiners from diverting petroleum products to overseas markets when export margins were more attractive.