Centre Removes Petrol Export Duty, Increases Levies on Diesel and ATF

The Indian government has implemented significant adjustments to the special additional excise duty (SAED) on petroleum product exports. According to official notifications released by the Ministry of Finance, the export duty on petrol has been completely removed, while levies on high-speed diesel and aviation turbine fuel (ATF) have been increased.

Revised Export Duty Structure

These changes, which took effect on October 31, 2026, follow a fortnightly review process intended to align domestic taxation with fluctuating international energy prices. The updated duty structure is as follows:

• Petrol: Duty reduced from Rs 2.5 per litre to nil.
• High-Speed Diesel: Duty increased from Rs 8.5 per litre to Rs 11.5 per litre.
• Aviation Turbine Fuel (ATF): Duty increased from Rs 10.5 per litre to Rs 11 per litre.

Context and Purpose

These export levies were first introduced on March 27, 2026, amid the West Asia crisis. The Ministry of Finance has consistently stated that the primary objective of these duties is to discourage exports of petroleum products, thereby ensuring sufficient supply for domestic consumption. The government conducts regular reviews every two weeks, evaluating the average international prices of crude oil and refined products to determine if adjustments are required.

Readers can verify these changes by referring to the official Gazette of India or by accessing the notifications published by the Department of Revenue on the Ministry of Finance's official portal.