Finance ministry raises petrol export levy while cutting diesel and ATF duties

The Finance Ministry has hiked the export duty on petrol to ₹3 per litre from nil. It reduced the export duties on diesel to ₹16.5 per litre and on aviation turbine fuel to ₹16 per litre. The changes were made through a gazette notification issued Friday night, with no alterations to domestic excise rates.

The move aims to provide momentum to fuel exports amid ongoing assessments by the ministry. It conducts these reviews every fortnight to determine appropriate levies following the escalation of the conflict in West Asia.

The previous revision took place on May 1. At that time, the export duty on diesel was lowered to ₹23 per litre from ₹55 per litre, and the duty on aviation turbine fuel was cut to ₹33 per litre from ₹42 per litre.

Export levies on petrol, diesel and aviation turbine fuel were first introduced on March 27, 2026. The government stated that the measures were meant to ensure domestic availability of petroleum products by disincentivising exports during the West Asia crisis.

The Special Additional Excise Duty on petrol exports remains at nil. Existing excise duty rates for petrol and diesel used in domestic consumption stay unchanged.

संबंधित लेख

German gas station at midnight displaying reduced petrol and diesel prices after the government's 17-cent-per-litre tax cut takes effect.
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Fuel tax cut on petrol and diesel takes effect

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The German government's fuel discount took effect at midnight. Taxes on petrol and diesel drop by about 17 cents per litre for two months. It remains unclear how quickly pump prices will reflect the cut.

South African petrol prices will rise by R3.06 per litre to R23.25 inland from midnight on 1 April, while diesel reaches a record R26.11 per litre after a R7.51 increase. The hike stems from global oil prices exceeding $100 per barrel amid the Iran war and a weakened rand. A temporary R3 per litre reduction in the fuel levy cushions the impact.

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Oil marketing companies hiked commercial LPG cylinder prices by ₹993 on May 1, 2026. Prices of aviation turbine fuel for domestic carriers remained unchanged, while ATF for international airlines rose by $76.55 per kilolitre. Bulk diesel prices increased from ₹137 to ₹149 per litre.

The South Korean government announced on Thursday it will expand tax cuts on liquefied petroleum gas butane products from 10 percent to 25 percent starting next month through June. The measure aims to mitigate the domestic impact of international price surges due to the Middle Eastern crisis. The Fair Trade Commission plans stronger penalties for repeated collusion cases.

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India's largest airline IndiGo has introduced new fuel surcharges of up to ₹950 per sector on domestic routes and ₹10,000 on long-haul international flights following an 8.56% rise in jet fuel prices. The government coordinated a partial and staggered increase with oil companies. The changes apply to all new bookings from April 2.

Brazil's average diesel price to distributors climbed 40% in early March to R$ 5.36 per liter following intensified US and Israeli attacks on Iran, per ANP data. Pump prices rose 20% by late March. Building on the March 12 federal tax exemption, the Lula administration is pressuring fuel stakeholders to limit consumer pass-throughs and fast-tracking a diesel subsidy ahead of October elections.

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The Department of Mineral and Petroleum Resources (DMPR) has corrected a significant error in its diesel price announcement. The wholesale price of diesel will rise by R5.27 per litre instead of the initially announced R6.19 per litre, effective Wednesday. Petrol prices remain set to increase by R3.27 per litre.

 

 

 

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