New Delhi — The Central government has reduced export duties on petrol, diesel and aviation turbine fuel (ATF), with the revised rates coming into effect from Saturday.
According to a government order, the export duty on petrol has been brought down to zero from Rs 3.5 per litre. The levy on diesel has been reduced to Rs 24 per litre from Rs 25.5, while the duty on ATF has been cut to Rs 19.5 per litre from Rs 22.
The revised duties apply only to petroleum products cleared for export. They do not alter the excise duty rates applicable to petrol, diesel or other fuels sold for domestic consumption, according to the Finance Ministry.
The reduction comes less than two weeks after the government had sharply increased export duties on the three products. On August 3, the petrol levy was raised to Rs 3.5 per litre from Rs 2.5, while the duty on diesel was increased from Rs 15.5 to Rs 25.5 per litre. The ATF export duty was also raised from Rs 14.5 to Rs 22 per litre.
The diesel levy consists of two components — Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC) — rather than being imposed entirely through SAED.
The Centre reviews export duties on petroleum products every fortnight. The rates are determined after taking into account average international prices of crude oil and refined petroleum products during the period since the previous review.
Depending on market conditions and the product concerned, the government can impose the duties through SAED, RIC or a combination of both.
The current export-duty mechanism was introduced on March 27, 2026, against the backdrop of a sharp rise in international crude oil and refined fuel prices linked to the conflict in West Asia.
The surge in global prices had made overseas sales of petroleum products more attractive for Indian refiners. The government had consequently used export duties as a policy tool to discourage excessive overseas shipments and help maintain adequate supplies of diesel and ATF in the domestic market.
The latest reduction indicates a reassessment of the export-duty structure in response to changing international price conditions. However, since the revised duties are applicable to exports, the move by itself does not directly change the retail prices of petrol and diesel for domestic consumers.
With inputs from IANS