Centre Revises Export Levies on Petrol, Diesel and ATF with Effect from 16 July 2026; Export levy on diesel increased to ₹15.50 per litre and on ATF to ₹14.50 per litre; levy on petrol reduced to ₹2.50 per litre

The Central Government has revised the rates of export levies applicable to petrol, high-speed diesel and aviation turbine fuel in view of movements in international crude oil and petroleum-product prices. The revised rates will come into effect from 16 July 2026.

The Ministry of Finance, Department of Revenue, has notified the revised rates through Notification No. 38/2026-Central Excise and Notification No. 39/2026-Central Excise, both dated 15 July 2026. The notifications have been published in the Gazette of India as G.S.R. 631(E) and G.S.R. 632(E), respectively.

Under Notification No. 38/2026-Central Excise, the export levy on high-speed diesel has been increased from ₹8.50 per litre to ₹15.50 per litre. The same notification reduces the export levy on petrol from ₹4 per litre to ₹2.50 per litre.

Under Notification No. 39/2026-Central Excise, the export levy on aviation turbine fuel, or ATF, has been increased from ₹7.50 per litre to ₹14.50 per litre.

The revision follows a sharp increase in international oil prices amid heightened geopolitical tensions in West Asia and the escalation of hostilities between the United States and Iran. The higher levies on diesel and ATF exports are intended to moderate export incentives and support the availability of petroleum products in the domestic market.

There is no change in the existing excise duty rates applicable to petrol and diesel cleared for domestic consumption. The present notifications relate to the levies imposed on exports of the specified petroleum products.

Export levies in the form of Special Additional Excise Duty and Road and Infrastructure Cess on petrol, diesel and ATF were introduced with effect from 27 March 2026 to discourage excessive exports and safeguard domestic supplies against the backdrop of the West Asia crisis.

The Government reviews these rates on a fortnightly basis after taking into account the average international prices of crude oil, petrol, diesel and ATF during the period since the previous review. The last revision had taken effect from 1 July 2026.

Notification No. 38/2026-Central Excise further amends the principal Notification No. 06/2026-Central Excise dated 26 March 2026, which was last amended through Notification No. 36/2026-Central Excise dated 30 June 2026.

Notification No. 39/2026-Central Excise further amends the principal Notification No. 08/2026-Central Excise dated 26 March 2026, which was last amended through Notification No. 37/2026-Central Excise dated 30 June 2026.

The revised export-levy structure is as follows:

Petroleum product Existing rate Revised rate from 16 July 2026 Change
Petrol ₹4.00 per litre ₹2.50 per litre Reduced by ₹1.50
High-speed diesel ₹8.50 per litre ₹15.50 per litre Increased by ₹7.00
Aviation turbine fuel ₹7.50 per litre ₹14.50 per litre Increased by ₹7.00

The Notifications can be accessed at: Notification No. 38/2026-Central Excise , Notification No. 39/2026-Central Excise

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