The government on Tuesday raised the export duty on petrol while lowering levies on diesel and aviation turbine fuel for the fortnight beginning July 1, recalibrating the tax structure in line with movements in global crude and product prices.
The special additional excise duty on petrol exports has been increased to ₹4 per litre from ₹1.5 per litre. In contrast, the levy on diesel exports has been cut to ₹8.5 per litre from ₹14 per litre, while the duty on ATF has been reduced to ₹7.5 per litre from ₹12.5 per litre.
The revised rates will take effect from July 1. The government reviews the levies every fortnight based on the average international prices of crude oil, petrol, diesel and ATF since the previous review.
Export duties on diesel and ATF were introduced on March 27, 2026, amid the West Asia crisis to discourage overseas sales and maintain domestic availability. Petrol exports were brought under the levy from May 16.
The government has also widened the exemption available to fuel exports by public sector oil companies. Supplies of petrol, diesel and ATF to Mauritius and the Maldives will now be exempt from the levy, in addition to exports to Nepal, Bhutan, Bangladesh and Sri Lanka.
The finance ministry said there would be no change in excise duty rates on petrol and diesel sold in the domestic market. The export levies were introduced to prevent exporters from benefiting disproportionately from the gap between domestic and international fuel prices while ensuring adequate supplies at home.
