India Raises Diesel Export Duty, Adds Petrol Levy; ATF Duty Cut
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India has raised the export duty on diesel to ₹25 per litre and introduced a levy of ₹1.5-per-litre on petrol. The government has also cut the ATF export duty to ₹19 per litre from ₹19.5.
The government has revised export duties on key petroleum products from 1 September, increasing the levy on diesel shipments while bringing petrol exports under a new duty. At the same time, the export duty on aviation turbine fuel (ATF) has been reduced.
Diesel exports will now attract a duty of ₹25 per litre, up from ₹24 per litre. Petrol, which was previously exempt, will carry an export duty of ₹1.5 per litre. For ATF, the levy has been cut to ₹19 per litre from ₹19.5 per litre.
Petrol, Diesel And ATF Levies Revised
The government introduced export duties on petrol, diesel and ATF on 27 March 2026, as part of steps to protect domestic fuel supplies during the West Asia crisis.
These duties are reviewed every fortnight. The revisions are based on average international prices of crude oil, petrol, diesel and ATF recorded since the previous review. The last change in rates came into effect on 15 August.
The latest notification does not alter the excise duty charged on petrol and diesel sold in the domestic market. The revised rates apply to exports of the petroleum products.
India Continues To Be A Major Fuel Exporter
Indian refiners have a large presence in overseas petroleum markets, making export duties one of the tools available to the government when it wants to influence the balance between exports and domestic supply.
The policy has gained importance amid sharp swings in global oil markets. The conflict in West Asia and disruptions around the Strait of Hormuz have added to concerns over the movement of crude and other energy supplies. Before the latest disruptions, the waterway accounted for roughly one-fifth of global oil and gas flows.
India's refining capacity stands at around 258 million tonnes, making it one of the world's largest refining hubs. Domestic fuel consumption has also continued to climb, with petroleum product consumption reaching a record 243 million tonnes in FY26.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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