Government removes petrol export duty, raises diesel and ATF levies

The government has scrapped the Rs 2.50-per-litre export duty on petrol while raising levies on diesel and aviation turbine fuel. The revision comes amid fortnightly reviews of fuel export duties and efforts to safeguard domestic supplies amid global market volatility

New Delhi: The government on Saturday withdrew the special additional excise duty on petrol exports while increasing export levies on diesel and aviation turbine fuel (ATF).

According to notifications issued by the Finance Ministry, petrol exports will no longer attract any export duty, compared with the earlier levy of Rs 2.50 per litre.

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At the same time, the duty on diesel exports has been increased to Rs 11.50 per litre from Rs 8.50 per litre, while the export levy on ATF has been raised to Rs 11 per litre from Rs 10.50 per litre.

The revised rates come as the government continues its fortnightly review of fuel export duties in response to fluctuations in international crude oil and refined product prices.

The latest revision reverses part of the October adjustment, when the government raised the levy on petrol exports to Rs 2.50 per litre from Rs 0.50 per litre while simultaneously reducing the duty on diesel exports to Rs 8.50 per litre from Rs 16 per litre.

Fuel export duties have undergone multiple revisions in recent months as authorities sought to balance domestic supply requirements with changing global market conditions.

The export levies were reintroduced in March this year after geopolitical tensions in the Middle East triggered a sharp rise in global crude prices and disrupted established energy supply routes.

The government had said the measures were aimed at ensuring adequate domestic fuel availability by discouraging refiners from diverting supplies to overseas markets when export margins were more attractive.

India’s energy security concerns intensified following disruptions to shipping through the Strait of Hormuz, a critical transit corridor through which a significant share of the country’s crude oil imports traditionally moved. The supply uncertainty prompted refiners to diversify sourcing arrangements and monitor export commitments more closely.