Noida, Sep 17 (APAC Media): The government has cut export levies on petrol, diesel and aviation turbine fuel (ATF), with the revised rates coming into effect from September 16 for the next fortnight, according to notifications issued by the Finance Ministry.
The levy on petrol exports has been reduced by Rs 1 per litre to Rs 0.50 per litre. The total levy on diesel has been cut by Rs 5 per litre to Rs 20, while the levy on ATF exports has been lowered by Rs 4 per litre to Rs 15.
The latest reductions reverse part of the increases announced at the previous fortnightly review, which came into effect from September 1.
At that time, the export levy on petrol was fixed at Rs 1.50 per litre, while the overall levy on diesel stood at Rs 25 per litre and that on ATF at Rs 19 per litre.
For diesel, the earlier levy comprised Special Additional Excise Duty (SAED) of Rs 24 per litre and Road and Infrastructure Cess (RIC) of Rs 1 per litre.
Under the latest revision, the SAED on diesel has been reduced to Rs 20 per litre, while the RIC has been withdrawn. The SAED on petrol has also been reduced to Rs 0.50 per litre.
The government reviews export levies on petroleum products every fortnight based on the average international prices of crude oil and petroleum products.
The levies were first imposed on March 27, 2026, as the government sought to discourage exports and ensure adequate domestic availability of petroleum products amid the West Asia crisis.
“The government reviews these export levies every fortnight based on average international prices of crude oil and petroleum products,” according to the policy framework governing the revisions.
The September 1 revision had raised the diesel export levy by introducing a Rs 1-per-litre RIC, which had earlier been nil. The latest notification removes that additional component and lowers the SAED on diesel.
The Finance Ministry notifications make clear that the latest changes relate only to export levies. There has been no change in the existing excise duty rates applicable to petrol and diesel sold in the domestic market.
The reduction in export levies is expected to alter the tax burden on refiners shipping petroleum products overseas, although the immediate impact will depend on international fuel prices and market conditions.
India is a major refining hub and exports petroleum products to several overseas markets. Export levies have been periodically adjusted as global crude and refined-product prices change.
The revised rates will remain in force for the current fortnight, after which the government is expected to undertake another review.
Future changes will depend on movements in international crude oil and petroleum product prices, as well as domestic supply conditions.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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