Petrol Duty Cut, Diesel & ATF Levies Rise

The Central Government has abolished the special additional excise duty (SAED) on exports of petrol while raising export duties on diesel and ATF. These new rates, which were issued by the Ministry of Finance on October 31, 2026, are effective forthwith and will be applicable for the next fortnight.

As per the new system, export of petrol will attract no additional duty whereas export duty on high-speed diesel has been increased to ₹11.50 per litre from ₹8.50 previously. Meanwhile, the export duty on ATF has been raised to ₹11 per litre from ₹10.50.

New Export Duty Rates for Petrol, Diesel and ATF

This revision alters the tax incidence for three major petroleum products that are exported out of India.

The new rates are:

Petrol: Nil, down from ₹2.50 per litre.
High Speed Diesel: ₹11.50 per litre, up from ₹8.50 per litre.
Aviation Turbine Fuel (ATF): ₹11 per litre, up from ₹10.50 per litre.

These have been implemented using notifications from the Department of Revenue under the Ministry of Finance. The government revises these rates every two weeks depending on the average price of crude oil and petroleum products internationally.

Why Has the Government Revised Fuel Export Duties?

The export duties on petrol, diesel, and ATF were introduced in India on 27th March, 2026 due to disruptions in international oil markets arising out of the West Asia situation.

The main purpose behind the imposition of duties was to ensure adequate supply of oil products domestically by preventing refiners from exporting them abroad where international prices were more favorable.

Since then, there have been various modifications in these duties after every two weeks depending upon international market conditions. The last revision came into effect on October 16, 2026.

No Change in Domestic Petrol and Diesel Excise Duty

It has been made clear by the government that the current modifications would be applicable to the export duties. The existing duty on petrol and diesel meant for domestic use would remain unchanged.

Hence, the current modification in the export duties does not necessarily imply an increase or decrease in the price of fuels at petrol pumps in India.

The current decision is the result of the continued attempt by the government to maintain a balance between domestic fuel availability and oil exports by India.