The Centre has reduced the windfall tax and export levies on petrol, diesel and aviation turbine fuel (ATF), lowering the duties applicable to petroleum products shipped overseas for the fortnight beginning September 16.
Under the revized rates, the levy on petrol exports has been cut to INR 0.50 per litre from INR 1.50 per litre in the previous fortnight. The levy on diesel exports has been reduced to INR 20 per litre from INR 25 per litre, while the duty on ATF exports has been lowered to INR 15 per litre from INR 19 per litre.
For diesel, the earlier INR 25 per litre levy comprised INR 24 per litre of Special Additional Excise Duty (SAED) and INR 1 per litre of Road and Infrastructure Cess (RIC). Under the latest revision, the SAED has been reduced to INR 20 per litre, while the RIC is nil. The petrol export levy of INR 0.50 per litre comprises SAED with no RIC, while the ATF levy is entirely through SAED.
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The revised rates form part of the government’s fortnightly review of export levies on petroleum products. The rates are adjusted based on movements in international crude oil and petroleum product prices as well as refinery margins.
The export levies were introduced on March 27, 2026, initially covering diesel and ATF, against the backdrop of the West Asia crisis. The levy was subsequently extended to petrol exports from May 16. The policy was introduced to discourage exports and support adequate domestic availability of petroleum products amid elevated global prices.
The latest reduction follows the previous fortnightly revision effective from 01st September, when the levy on petrol exports was set at INR 1.50 per litre, while the combined levy on diesel exports stood at INR 25 per litre and the ATF levy at INR 19 per litre. The latest move therefore represents a reduction of INR 1 per litre for petrol, INR 5 per litre for diesel and INR 4 per litre for ATF exports.
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Importantly, the change applies to exports and does not alter the existing excise duty rates on petrol and diesel cleared for domestic consumption. Therefore, the announcement does not by itself represent a reduction in the taxes applicable to petrol or diesel sold at Indian fuel stations.
India’s petroleum export sector remains closely linked to global crude and refined-product markets, making the government’s fortnightly duty reviews relevant for refiners and companies selling fuel overseas. The next revision will depend on prevailing international prices, refinery margins and other market conditions.
