India Cuts Petrol, Diesel, ATF Export Levies
India Cuts Petrol, Diesel, ATF Export Levies
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Key Points
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India is a significant exporter of refined petroleum products: petroleum exports represented 22.9% of the country’s petroleum, oil and lubricants production and 10.8% of gross exports in June 2026.
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The revised structure applies SAED of Rs 0.5 per litre to petrol exports, while ATF exports are subject to SAED alone at Rs 15 per litre; neither fuel carries the Road and Infrastructure Cess under the new rates.
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The September 1 review had reversed the diesel cess position by raising the Road and Infrastructure Cess from nil to Rs 1 per litre, making the latest decision a withdrawal of that newly imposed charge.
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The fortnightly review is based on average international prices not only of crude oil but also of petrol, diesel and ATF, allowing the government to adjust each export levy separately.
India has cut export levies on petrol, diesel, and aviation fuel effective September 16, according to Telangana Today. Petrol duty fell to Rs 0.5 per litre from Rs 1.5, while diesel dropped to Rs 20 from Rs 25. Aviation turbine fuel (ATF) levies decreased to Rs 15 from Rs 19. These taxes were introduced in March 2026 to protect domestic fuel supplies during the West Asia crisis.
The government reviews these export duties every two weeks based on international crude oil and fuel prices. The Hans India reports that diesel specifically benefits from eliminating the Rs 1-per-litre Road and Infrastructure Cess. Domestic excise duties on petrol and diesel remain unchanged. India exported refined petroleum products worth 22.9% of its total petroleum production in June 2026.
Why India Adjusts Export Duties Regularly
India's government ties export levies directly to global oil market conditions. According to IANS Live, the fortnightly review examines average international prices of crude oil, petrol, diesel, and ATF separately. This allows officials to adjust each fuel's export tax independently based on market swings. The system lets India protect domestic supply while responding quickly to price changes.
Diesel Gets Biggest Relief From Tax Cuts
Diesel exports see the steepest reduction in the new levy structure. The tax falls from Rs 25 to Rs 20 per litre, but the real relief comes from scrapping the Rs 1-per-litre Road and Infrastructure Cess entirely, Vartha Bharati reports. The Special Additional Excise Duty (SAED) drops to Rs 20 per litre. This marks a reversal — just two weeks earlier on September 1, the government had added that Rs 1 cess.
Petrol and ATF Levies Hit New Lows
Petrol exports now face a much lighter tax burden. According to 10net, the Special Additional Excise Duty on petrol falls to just Rs 0.5 per litre — down two-thirds from Rs 1.5. ATF exports are taxed only through SAED at Rs 15 per litre. Neither petrol nor ATF carries the Road and Infrastructure Cess under the revised rates, simplifying the tax structure for exporters.
India's Massive Role in Global Fuel Markets
These export levies affect a critical segment of India's economy. Refined petroleum products made up 10.8% of the country's total gross exports as of June 2026. Petroleum exports alone represented 22.9% of India's petroleum, oil, and lubricants production output. By adjusting export taxes, the government balances keeping fuel affordable at home while staying competitive in global markets.
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