The Centre has raised the windfall tax on petrol exports to Rs 1.5 per litre from nil, effective September 1, while increasing the levy on diesel exports and marginally cutting the duty on aviation turbine fuel (ATF).
The export levy on diesel has been raised to Rs 25 per litre from Rs 24 per litre in the previous fortnightly revision, while the duty on ATF exports has been reduced to Rs 19 per litre from Rs 19.5 per litre.
The Rs 1.5-per-litre levy on petrol exports will be charged entirely as Special Additional Excise Duty (SAED). For diesel, SAED will account for Rs 24 per litre and the remaining Re 1 will be levied as Road and Infrastructure Cess (RIC). The Rs 19-per-litre levy on ATF exports will be charged entirely as SAED.
The changes mark the latest fortnightly revision in export levies on petroleum products, which were introduced from March 27, 2026, to ensure adequate domestic availability by discouraging exports amid the West Asia crisis.
The levies were last revised on August 15, when the government reduced the export duty on petrol to nil, set the levy on diesel at Rs 24 per litre and fixed the duty on ATF at Rs 19.5 per litre.
Rates are revised every fortnight based on the average international prices of crude oil, petrol, diesel and ATF prevailing during the period since the previous review.
The latest revision reverses the relief provided to petrol exporters in the previous fortnight and raises the levy on diesel exports by Re 1 per litre, while providing a 50-paise-per-litre reduction for ATF exports.
The government said there is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption. The revised rates, therefore, apply only to exports and will not affect the central excise duty applicable to petrol and diesel sold in the domestic market.
The fortnightly review mechanism allows the government to recalibrate export levies in response to changes in international crude and petroleum product prices while maintaining its ability to discourage exports when domestic fuel availability is a concern.
