Archive · 17 Sep 2026
India Cuts Export Levies on Petrol, Diesel and ATF
The Indian government charges special taxes on some fuels that companies export.
It has lowered these taxes on petrol, diesel and aviation fuel.
The petrol export levy is now Rs 0.50 per litre.
The total diesel export levy is now Rs 20 per litre.
This includes a lower special tax and the removal of a Rs 1 cess.
The levy on aviation fuel is now Rs 15 per litre.
The changes apply for two weeks from September 16, 2026.
They affect exports and do not change domestic petrol or diesel taxes.
The government will review the rates again using international prices and refinery margins.
The government reduced export levies on petrol, diesel and aviation turbine fuel for the next fortnight.
The petrol levy was cut to Rs 0.50 per litre from Rs 1.50.
The total diesel levy fell to Rs 20 per litre from Rs 25, with SAED reduced and RIC withdrawn.
The ATF export levy was lowered to Rs 15 per litre from Rs 19.
The revised rates took effect on September 16, while domestic petrol and diesel excise duties remained unchanged.
- Who
- The Central Government, through the Ministry of Finance.
- What
- Reduced export levies on petrol, diesel and aviation turbine fuel.
- When
- The revised rates took effect on September 16, 2026, for the next fortnight; the reports were published on September 17, 2026.
- Where
- India, covering exports of the specified petroleum products.
- Why
- The government reviews the levies to balance domestic fuel availability with changing international crude prices and refinery margins; the levies were originally introduced to discourage exports amid the West Asia crisis.
Domestic Supply Protection
Exporter Relief
Purpose of the levy policy
Domestic Supply Protection
The government introduced the export levies on March 27, 2026, to discourage exports and maintain adequate domestic fuel supplies amid the West Asia crisis.
Exporter Relief
The latest reductions ease the tax burden on fuel exporters and provide relief to domestic refiners as global crude-market conditions change.
Effect of the latest revision
Domestic Supply Protection
Fortnightly reviews allow the government to adjust export duties according to domestic availability, international prices and refinery margins.
Exporter Relief
The cuts reverse part of the earlier increases and reduce export costs for petrol, diesel and ATF.
- Petrol export levy
- Rs 0.50 per litre, down from Rs 1.50.
- Diesel export levy
- Rs 20 per litre, down from Rs 25.
- Diesel SAED
- Reduced to Rs 20 per litre from Rs 24.
- Diesel RIC
- Withdrawn; the previous Rs 1 per litre charge is now nil.
- ATF export levy
- Rs 15 per litre, down from Rs 19.
- Effective date
- September 16, 2026.
- Review schedule
- Export levies are reviewed every fortnight based on international prices and refinery margins.
- Domestic fuel duty
- Excise duty rates on petrol and diesel for domestic consumption were unchanged.
