India raises diesel and aviation fuel export duties, removes petrol levy

The Ministry of Finance has revised export duty structures on petroleum products, effective immediately. The export duty on diesel has been raised by ₹3 per litre to ₹11.50 per litre, while the levy on aviation turbine fuel (ATF) has been set at ₹11 per litre, marking a significant increase in the tax burden on these fuel exports.

Simultaneously, the government has scrapped the ₹2.50 per litre export duty on petrol, removing all export restrictions on the commodity. The move reflects the administration's efforts to calibrate export duties based on domestic demand pressures and international market conditions.

These adjustments are part of the government's ongoing strategy to regulate fuel exports and ensure domestic availability of essential petroleum products. By raising duties on diesel and ATF—two fuels with significant domestic consumption—authorities aim to discourage exports and maintain adequate domestic supplies. The removal of petrol duties suggests the government views current petrol stocks as sufficient to allow unrestricted exports.

The changes apply to all export shipments going forward and mark the latest in a series of duty revisions as the government balances domestic fuel security with the revenue generated from petroleum product exports.