New Delhi: The Centre has scrapped the special additional excise duty (SAED) on petrol exports while increasing the export levies on diesel and aviation turbine fuel (ATF), according to fresh notifications issued by the Ministry of Finance.
Under the revised rates, petrol exports will no longer attract the special levy. However, the duty on high-speed diesel exports has been increased from Rs 8.5 to Rs 11.5 per litre, while the levy on ATF exports has been raised from Rs 10.5 to Rs 11 per litre.
The revised rates came into effect on October 31, following their publication in the Official Gazette. The notifications were issued by the Department of Revenue under the Ministry of Finance.
Petrol Export Duty Removed, Diesel Levy Increased
Under the latest notification, the SAED on petrol exports has been reduced from Rs 2.5 per litre to nil. This means exporters will no longer have to pay the special additional excise duty on petrol shipments.
In contrast, the government has raised the levy on high-speed diesel exports by Rs 3 per litre, taking it from Rs 8.5 to Rs 11.5 per litre.
The changes mark a shift in the government’s export duty structure, with petrol exports getting relief while diesel shipments face a higher levy.
ATF Export Duty Raised to Rs 11 Per Litre
The Centre has also increased the special additional excise duty on aviation turbine fuel exports.
According to Notification No. 56/2026-Central Excise, the levy on ATF has been raised from Rs 10.5 to Rs 11 per litre.
With this revision, the government has withdrawn the export duty on petrol while increasing the applicable levies on both diesel and aviation turbine fuel.
Why Did the Centre Introduce Export Duties on Fuel?
The government introduced special export levies on petrol, diesel and ATF on March 27, 2026, amid the West Asia crisis and uncertainty over international energy supplies.
The move was aimed at protecting domestic availability of petroleum products by discouraging excessive exports. At the time, fluctuations in global energy prices and concerns over supply disruptions had raised questions about the availability of fuel in the Indian market.
Through the export duties, the government sought to ensure that sufficient quantities of petroleum products remained available for domestic consumption rather than being diverted to overseas markets.
Government Reviews Fuel Export Duties Every 15 Days
The export duty structure has undergone several revisions since its introduction. The Centre reviews the applicable rates every fortnight, taking into account average international prices of crude oil, petrol, diesel and ATF during the period following the previous review.
The rates are adjusted in line with movements in international energy prices and prevailing market conditions.
In the previous revision, which came into effect on October 16, the SAED on petrol exports was fixed at Rs 2.5 per litre, diesel at Rs 8.5 per litre and ATF at Rs 10.5 per litre.
The latest changes remove the levy on petrol exports while increasing the duties on diesel and ATF shipments, effective October 31.