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India raises diesel export levy, imposes petrol duty; cuts ATF levy | Economy & Policy News

India raises diesel export levy, imposes petrol duty; cuts ATF levy | Economy & Policy News

The government has revised export duties on petroleum products with effect from September 1, raising the levy on diesel exports and introducing a duty on petrol exports. Export duty on aviation turbine fuel (ATF) has been lowered.

 

The export duty on diesel has been increased to ₹25 per litre from ₹24 per litre. The government has also imposed an export duty of ₹1.5 per litre on petrol, compared with nil previously. In contrast, the export levy on ATF has been reduced to ₹19 per litre from ₹19.5 per litre.

 

The levies on exports of petrol, diesel and ATF were introduced from March 27, 2026, as part of measures to ensure domestic availability of petroleum products by discouraging exports amid the West Asia crisis.

  

The rates are reviewed and revised every fortnight based on average international prices of crude oil, petrol, diesel and ATF during the period since the previous review. The previous revision took effect on August 15.

 

The government said there is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption.

 

The latest move comes as India’s refiners remain significant exporters of petroleum products, with the government using export levies as a policy tool to balance overseas sales with domestic availability amid volatility in global oil markets.

 

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