The Central government cut export duties on petrol, diesel and aviation turbine fuel (ATF) from Saturday, setting the petrol levy at zero and reducing the charges on diesel and ATF.
The government reduced the petrol export duty to nil from Rs 3.5 per litre, cut the total levy on diesel to Rs 24 per litre from Rs 25.5, and lowered the ATF export duty to Rs 19.5 per litre from Rs 22, according to an order.
The revised rates apply to petroleum products cleared for export. The Finance Ministry has earlier clarified that the changes do not affect excise rates on fuel cleared for domestic consumption.
The move comes less than two weeks after the Centre raised export levies on all three fuels.
On August 3, the petrol export duty was increased to Rs 3.5 per litre from Rs 2.5, while the levy on diesel was raised to Rs 25.5 per litre from Rs 15.5. The ATF export duty was also increased to Rs 22 per litre from Rs 14.5.
The total diesel levy comprises two duties — Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC) — rather than SAED alone.
The Centre reviews export levies on petroleum products every fortnight. The rates are determined based on average international prices of crude oil, petrol, diesel and ATF recorded since the previous review.
The duties can be imposed through SAED, RIC or a combination of the two, depending on the product and the rates notified for each review period.
The current export-duty framework was introduced on March 27, 2026, amid a spike in international crude oil and refined fuel prices linked to the West Asia conflict.
International prices of crude oil and refined petroleum products had risen during the conflict, creating an incentive for Indian refineries to sell more petroleum products in overseas markets.
The export duties were therefore imposed to ensure adequate domestic availability of diesel and ATF and prevent excessive diversion of petroleum products to overseas markets.
The latest reduction in export duties comes as the government continues to adjust the levies in response to changing global crude oil and refined fuel prices.
