India Cuts Export Duty on Diesel, ATF; Petrol Exports Remain Unchanged

The Indian government has revised its export duty structure by reducing levies on diesel and aviation turbine fuel, while keeping petrol exports unchanged. The move, effective May 1, is aimed at ensuring adequate domestic fuel availability amid ongoing volatility in global energy markets.

Under the new rates, the export duty on diesel has been reduced to ₹23 per litre, while aviation turbine fuel now carries a duty of ₹33 per litre. However, there is no change in duties on petrol, and petrol exports continue to remain duty-free. Officials clarified that domestic excise duties on petrol and diesel also remain unchanged.

The decision reflects a calibrated approach to managing export duty in India, balancing the need to maintain sufficient domestic supply while allowing refiners to remain competitive in international markets. Experts note that import and export duties play a crucial role in stabilizing fuel prices and controlling supply flows.

India has emerged as a key player in global fuel trade, with petrol export from India witnessing steady growth over the years. Strong refining capacity has enabled Petrol export by India to meet demand across Asia, Africa, and Europe.

Industry analysts believe that lowering duties on diesel and ATF could boost exports while ensuring domestic supply stability. At the same time, maintaining the current structure for petrol helps sustain export competitiveness without disrupting internal markets.

Overall, the policy adjustment highlights the government’s strategy to respond to global uncertainties while safeguarding national energy interests and supporting the refining sector.