Fuel Export Duties Revised: Petrol Tax Returns as Diesel, ATF Levies Cut

India has revised its fuel export duties in the latest fortnightly review, reintroducing a ₹3 per litre export tax on petrol while reducing levies on diesel and aviation turbine fuel (ATF). The new rates came into effect on May 16 as part of the Centre’s strategy to align domestic fuel availability with changing global crude oil prices.

Under the revised structure, export duties on diesel have been lowered to ₹16.5 per litre, while ATF export levies now stand at ₹16 per litre. The move is expected to offer some relief to exporters amid changing international energy markets and easy crude prices trends.

The government’s decision indicates its ongoing efforts to maintain stability in the domestic fuel market without impacting retail consumers. There has been no change in fuel taxes for domestic buyers, ensuring petrol and diesel prices at fuel stations will not be affected.

According to Industry experts, the revised petrol export tax could help secure the local supply, while lower duties on diesel exports and ATF export levies may enhance refining margins and export competitiveness for Indian oil companies. The periodic review of export taxes was first introduced to regulate windfall gains earned by refiners during periods of elevated crude oil prices. Analysts are now closely watching global oil trends to assess whether further adjustments to fuel taxation policies may follow in the coming weeks.