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India hikes diesel export duty, imposes petrol levy; cuts ATF charge

India has raised its export duty on diesel to Rs 25 per litre while introducing a fresh levy of Rs 1.5 on petrol exports. The government simultaneously reduced the export duty on aviation turbine fuel to Rs 19 per litre.

LSN India · 1 September 2026

India hikes diesel export duty, imposes petrol levy; cuts ATF charge

India's petroleum product export duties have been adjusted in a fresh round of fiscal measures aimed at managing domestic fuel availability and government revenues. The diesel export duty has been increased to Rs 25 per litre, marking a significant tightening on outbound shipments of the key fuel product. Simultaneously, a new export duty of Rs 1.5 per litre has been introduced on petrol, bringing the petrol category into the duty framework for the first time under this structure. The moves reflect the government's approach to balancing export competitiveness with domestic supply considerations in the fuel sector. In a contrasting move, the export duty on aviation turbine fuel has been reduced to Rs 19 per litre, potentially providing relief to the aviation industry and supporting airline operations. These tariff adjustments come as India continues to calibrate its energy policy in response to global market dynamics and domestic economic priorities. The changes to export duties on petroleum products are likely to influence refinery operations and export planning among India's major fuel producers.