November 2, 2026: The Centre has removed the special additional excise duty of Rs 2.5 per litre on petrol exports while increasing the export levy on diesel and aviation turbine fuel (ATF), introducing fresh changes to India’s petroleum taxation framework.

According to notifications issued by the Ministry of Finance on Saturday, the export duty on high-speed diesel has been increased from Rs 8.5 to Rs 11.5 per litre. The levy on aviation turbine fuel has also been raised from Rs 10.5 to Rs 11 per litre.

The revised rates came into effect on October 31, following their publication in the official Gazette.

The changes represent another adjustment in the government’s approach to regulating petroleum product exports amid fluctuations in international energy prices and concerns over domestic fuel availability.

The decision comes as India’s energy sector continues to navigate uncertainty arising from geopolitical tensions, changing crude oil prices and variations in international demand.

The government has been reviewing export duties on petroleum products at regular intervals to account for changes in global market conditions.

Petrol export duty removed

Under the latest revision, the Centre has completely withdrawn the special additional excise duty of Rs 2.5 per litre previously applicable to petrol exports.

The removal reduces the tax burden on companies exporting petrol and changes the cost structure for refiners and petroleum marketing businesses involved in international trade.

However, the government has simultaneously increased the duty applicable to diesel exports, indicating a differentiated approach towards various petroleum products.

The diesel levy has been raised by Rs 3 per litre, moving from Rs 8.5 to Rs 11.5 per litre.

The duty on aviation turbine fuel has increased by 50 paise per litre, taking the rate to Rs 11.

(Source: Newsonline)