The Centre has revised export taxes on petrol, diesel and aviation turbine fuel (ATF), increasing the levy on petrol shipments while substantially lowering the duty on diesel exports for the next fortnight. The changes take effect from October 16 as the government continues to review petroleum product taxes in response to movements in global energy markets. Under the revised structure, the Special Additional Excise Duty (SAED) on petrol exports has been raised to Rs 2.5 per litre from Rs 0.50 per litre. In contrast, the levy on diesel exports has been reduced to Rs 8.5 per litre from Rs 16 per litre.
The export duty on aviation turbine fuel has been kept unchanged at Rs 10.5 per litre. The entire levy on ATF continues to be collected through SAED.
The Road and Infrastructure Cess (RIC) remains nil on exports of petrol, diesel and ATF. The latest changes follow the previous revision announced on October 1.
The revised rates represent a contrasting tax treatment for the two major transportation fuels. Exporters of petrol will now face a higher duty, while those shipping diesel overseas will benefit from a lower levy during the current fortnight.
The SAED on petrol has increased fivefold, from Rs 0.50 to Rs 2.5 per litre. Meanwhile, the duty on diesel has been cut by Rs 7.5 per litre, bringing it down from Rs 16 to Rs 8.5 per litre.
For aviation turbine fuel, the government has maintained the existing export levy at Rs 10.5 per litre. No change has been made to the Road and Infrastructure Cess applicable to the three fuels, which continues to remain nil.
Why The Government Reviews Fuel Export Taxes Every Fortnight
The Centre introduced export levies on petrol, diesel and ATF on March 27, 2026, against the backdrop of the West Asia crisis. The measures were designed to help preserve domestic availability of petroleum products by discouraging exports when overseas market conditions make international sales more attractive.
Since their introduction, the applicable duties have been subject to fortnightly reviews. These assessments take into account average international prices of crude oil and refined petroleum products, including petrol, diesel and aviation turbine fuel, recorded since the preceding revision.
The latest changes, effective October 16, form part of this recurring review process. By adjusting the duties at regular intervals, the government can respond to changing international market conditions while seeking to ensure sufficient supplies for domestic consumers.
