Centre cuts export levies on petrol, diesel, ATF for next fortnight

The Centre has reduced export levies on petrol, diesel and ATF from September 16. The export duty on petrol is cut to Rs 0.5/litre, diesel to Rs 20/litre, and ATF to Rs 15/litre. The rates are reviewed every fortnight by the government.

Representative Image (File Photo/ANI)

The Central Government has reduced export levies on petrol, diesel and aviation turbine fuel (ATF) for the next fortnight, cutting the duty on petrol by Rs 1 per litre, diesel by Rs 5 per litre and ATF by Rs 4 per litre from the rates applicable since September 1, according to notifications issued by the Ministry of Finance on Wednesday.

Revised Export Duties

Under the latest revision, the export levy on petrol has been reduced to Rs 0.5 per litre from Rs 1.5 per litre, while the total levy on diesel has been cut to Rs 20 per litre from Rs 25 per litre. The export duty on ATF has also been reduced to Rs 15 per litre from Rs 19 per litre.

Diesel Levy Breakdown

For diesel, the previous levy of Rs 25 per litre comprised Rs 24 per litre of Special Additional Excise Duty (SAED) and Rs 1 per litre of Road and Infrastructure Cess (RIC). Under the revised rates, SAED has been reduced to Rs 20 per litre, while RIC has been brought down to nil.

The Finance Ministry, through separate notifications, revised the SAED on petrol and diesel to Rs 0.5 per litre and Rs 20 per litre, respectively, while reducing the levy on ATF to Rs 15 per litre. The government has also withdrawn the Rs 1 per litre RIC on diesel exports imposed during the previous review. The September 1 notification had increased the cess on diesel exports from nil to Rs 1 per litre.

Background and Review Mechanism

The export levies were introduced with effect from March 27, 2026, to discourage exports and ensure adequate domestic availability of petroleum products amid the West Asia crisis. The rates are reviewed every fortnight based on average international prices of crude oil, petrol, diesel and ATF.

In the previous revision, effective September 1, the export levy on petrol was fixed at Rs 1.5 per litre, the overall levy on diesel at Rs 25 per litre and the levy on ATF at Rs 19 per litre.

The revised rates will come into effect from September 16.

No Change for Domestic Consumers

There is no change in the existing excise duty rates on petrol and diesel meant for domestic consumption.

(ANI)

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