CENTRE RESETS PETROLEUM EXPORT DUTIES, ELIMINATES PETROL LEVY WHILE RAISING DIESEL TAX
November 1, 2026
The Union government has scrapped the special additional excise duty (SAED) of ₹2.50 per litre on petrol exports while increasing the export levy on high-speed diesel to ₹11.50 per litre from ₹8.50, according to notifications issued by the Finance Ministry on October 31, 2026.
The government has also raised the export duty on aviation turbine fuel (ATF) from ₹10.50 to ₹11 per litre. The revised rates came into effect on October 31 and will apply for the next fortnight, as part of the Centre’s periodic review of petroleum export levies.
The changes represent a shift in the taxation of exported petroleum products. Petrol exports will no longer attract the additional levy, while diesel exports face an increase of ₹3 per litre. The marginal increase in the ATF levy adds another 50 paise per litre to the existing duty.
The export duties were initially introduced on March 27, 2026, amid escalating tensions in West Asia and uncertainty surrounding international energy supplies. The government stated that the measures were intended to discourage excessive exports and maintain adequate domestic availability of petroleum products during a period of global market volatility.
Since their introduction, the rates have been revised every fortnight, taking into account movements in international crude oil and refined petroleum product prices. The previous revision, effective October 16, had fixed the export levies at ₹2.50 per litre for petrol, ₹8.50 for diesel and ₹10.50 for ATF.
Importantly, the latest notification does not change the existing excise duty rates on petrol and diesel supplied for domestic consumption. The revised levies apply to exports and do not, by themselves, constitute an increase in the taxes paid by domestic fuel consumers.
The decision reflects the Centre’s continuing effort to balance petroleum exports, domestic fuel availability and changing international energy-market conditions amid geopolitical uncertainty.
