The Centre has withdrawn the Rs 2.5 per litre export duty on petrol while raising the diesel export levy to Rs 11.5 per litre, according to excise notifications issued by the Ministry of Finance on October 31. The duty on aviation turbine fuel (ATF) exports has also increased from Rs 10.5 to Rs 11 per litre.
The revised rates were notified by the Department of Revenue through separate central excise notifications and took effect on October 31, the date they were published in the official Gazette. The petrol and diesel changes were covered under the relevant excise notification, while Notification No. 56/2026-Central Excise specifically provided for the increase in the levy on ATF exports.
Before the latest revision, the export duty on petrol stood at Rs 2.5 per litre, while the levy on high-speed diesel was Rs 8.5 per litre. The ATF export duty was Rs 10.5 per litre. The latest changes therefore remove the petrol export levy and increase the diesel duty by Rs 3 per litre and the ATF duty by Rs 0.5 per litre.
The export duties were first introduced on March 27, 2026, against the backdrop of the West Asia crisis. The Centre had said the measure was intended to discourage exports and help ensure the availability of petroleum products in the domestic market. The decision came amid rising international energy prices and uncertainty over supplies.
Since their introduction, the duties on petrol, diesel and ATF have been revised every fortnight. The review process takes into account average international prices of crude oil, petrol, diesel and ATF during the period following the previous assessment. The rates have changed multiple times since the initial notification in response to movements in international prices.
For cities, the notifications are relevant to the wider fuel supply chain that supports road transport, logistics, aviation and other urban economic activity. However, the source report does not state whether the changes will directly alter retail petrol or diesel prices for consumers. The notified measures apply to exports, while domestic pump prices are determined through separate pricing and tax mechanisms.
The change also comes as fuel availability remains linked to international supply conditions and the Centre’s stated objective of retaining petroleum products for the domestic market. Export duties can alter the relative attractiveness of overseas sales, but the notification itself does not specify any change in domestic allocation, refinery operations or transport-sector pricing.
The latest rates follow the October 16 review, when the duties stood at Rs 2.5 per litre for petrol, Rs 8.5 per litre for high-speed diesel and Rs 10.5 per litre for ATF. The revised export duties will remain subject to the government’s continuing review process, which is based on international fuel and crude oil price movements.
