India Cuts Export Duties On Petrol, Diesel And ATF

India has reduced export duties on petrol, diesel and aviation turbine fuel (ATF), with the revised rates coming into effect from August 15. The export duty on petrol has been reduced to nil from Rs 3.5 per litre.

The total levy on diesel exports has been lowered to Rs 24 per litre from Rs 25.5, while the ATF export duty has been cut to Rs 19.5 per litre from Rs 22.

The revised rates apply specifically to petroleum products cleared for export. The Finance Ministry has clarified that changes in export levies do not affect excise duty rates applicable to petrol and diesel sold in the domestic market.

The latest reduction comes less than two weeks after the government raised duties on all three fuels on August 3. At that time, petrol's export levy was increased to Rs 3.5 per litre from Rs 2.5, while the diesel levy rose to Rs 25.5 per litre from Rs 15.5.

The ATF duty was raised to Rs 22 per litre from Rs 14.5. The government reviews these export duties every two weeks. Rates are determined using average international prices of crude oil and refined petroleum products since the previous review.

The current export-duty framework was introduced on March 27, 2026, amid a rise in international crude and refined fuel prices during the West Asia conflict. The government said higher global prices could encourage refiners to increase overseas sales, potentially affecting domestic availability of diesel and ATF.

Petrol was brought under the export-duty regime on May 16, when a Rs 3-per-litre levy was imposed. Subsequent reviews have resulted in multiple changes to the rates.

The latest revision lowers the burden on exporters while retaining a levy on diesel and ATF exports. The duties can be imposed through the Special Additional Excise Duty, Road and Infrastructure Cess, or a combination of both, depending on the notified rates.

The reduction in export duties is expected to have a positive impact on the export of petroleum products from India. The government's decision to review export duties every two weeks allows for flexibility in responding to changes in global market conditions.

In the context of the current global economic situation, the reduction in export duties on petrol, diesel, and ATF is a significant development. It reflects the government's efforts to balance the interests of exporters and domestic consumers.

The move is also expected to have implications for the domestic market, as it may lead to increased availability of diesel and ATF. However, the impact on domestic prices will depend on various factors, including global market trends and the government's pricing policies.

Overall, the reduction in export duties on petrol, diesel, and ATF is a notable development in the context of India's energy sector. It highlights the government's efforts to navigate the complexities of the global energy market and balance the competing interests of different stakeholders.