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.

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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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