💰 Economy
Centre scraps export duty on petrol, raises levies on diesel and jet fuel exports
In 60 seconds: The Centre has removed the export duty of ₹2.50 a litre on petrol and raised levies on exports of diesel and aviation turbine fuel. Under Finance Ministry notifications issued on Saturday, diesel exports now pay ₹11.50 a litre instead of ₹8.50, and ATF ₹11 instead of ₹10.50. The rates are reviewed every fortnight. The duties aim to keep enough fuel in India by discouraging refiners from exporting when overseas margins are higher.
Why it matters
India is a big exporter of refined fuels. When world prices jump, refiners earn more by selling abroad, so an export duty helps keep diesel and jet fuel available at home.
Explain it simply
Imagine a mango farmer who can get a better price in another city. If the local market adds a small fee on mangoes leaving town, more of them stay in the local market.
The 3-minute read
What happened
Petrol exports now attract no export duty at all. Diesel's levy went up by ₹3 a litre and ATF's by 50 paise a litre.
Background
Export levies on fuel were brought back in March 2026 after Middle East tensions pushed up global crude prices and disrupted energy supply routes. Since then the rates have been changed regularly.
How it works
The government reviews the duties every fortnight in line with world prices of crude oil and refined products. A higher duty makes exports less attractive, so refiners sell more in India.
What's next
The rates will be reviewed again in the next fortnightly review, depending on how crude and fuel prices move abroad.
What it means for you
The aim is steady supply of diesel and jet fuel at home, which matters for trucks, farm machines, buses and flights.
Key numbers
- Nil: Export duty on petrol now (was ₹2.50/litre)
- ₹11.50/litre: Export duty on diesel (was ₹8.50)
- ₹11/litre: Export duty on ATF (was ₹10.50)
- Every 15 days: How often rates are reviewed
Both sides
- Government: The duties ensure adequate fuel at home by discouraging refiners from diverting products abroad when export margins are better.
- Exporting refiners: Petrol exports are now duty-free, while diesel and ATF exports cost more; rates can change again at the next fortnightly review.
Key terms explained
- Export duty
- A tax charged on goods when they are sent out of the country.
- Aviation turbine fuel
- The kerosene-type fuel used by jet aircraft, often called ATF.
The story so far
- Mar 2026: Export levies on fuel return as Middle East tensions push up crude prices. The Centre brought back export duties on fuel after tensions in the Middle East raised global crude prices and disrupted energy supply routes.
- Earlier in Oct 2026: An earlier October review raises the petrol levy and cuts the diesel levy. Rates are reviewed every fortnight. The earlier October change moved petrol and diesel in opposite directions, and the latest move partly reverses it.
- 31 Oct 2026: Petrol export duty scrapped; diesel and ATF levies raised. Finance Ministry notifications set petrol export duty at nil from ₹2.50 a litre, diesel at ₹11.50 from ₹8.50, and ATF at ₹11 from ₹10.50.
- Today: Petrol export duty scrapped; diesel and ATF levies raised
Exam notes (UPSC, SSC, Banking, PSC)
- Export and import duties are levied under the Customs Act, 1962.
- ATF stands for aviation turbine fuel, the fuel used by jet aircraft.
- Petrol, diesel and ATF are outside GST; they attract central excise duty and state VAT.
- India first imposed a windfall tax on fuel exports and domestic crude in July 2022.
Likely exam question: Explain how export duties on petroleum products can be used to protect domestic fuel supply. What are their costs for the economy?