India

India Removes Petrol Export Duty, Raises Diesel and ATF Levies

By

India Removes Petrol Export Duty, Raises Diesel and ATF Levies
Photo: Image for the purpose of representation. | Photo Credit: File

On Saturday, October 31, 2026, the Indian government eliminated the export duty on petrol while increasing the export levy on diesel by ₹3 per litre and on aviation turbine fuel (ATF) by 50 paise per litre for the next 15 days. Domestic excise duty rates for petrol and diesel remained unchanged. The new diesel export levy is ₹11.5 per litre, up from ₹8.5 per litre in the previous fortnight. The ATF export levy rose to ₹11 per litre from ₹10.5 per litre. The adjustment comes as India’s diesel exports surged to 700 kilo barrels per day in October, the highest level since September 2025, amid a global supply crunch, especially in Europe. Sumit Ritolia, Manager for Modelling and Refining at Kpler, noted on October 30 that diesel exports are expected to fall to 500–550 kbd in November–December, rise to 550–600 kbd in Q1 2027, and then be constrained by higher maintenance in Q2 2027, with new capacity contributing later in 2027. The government reviews export levies every two weeks, a practice started on March 27, to align with average international benchmark prices of crude oil, petrol, diesel, and ATF and to safeguard domestic fuel availability by discouraging exports.

Frequently asked questions

When did India remove the export duty on petrol?

On Saturday, October 31, 2026.

What new export levies were introduced for diesel and ATF?

The diesel export levy increased by ₹3 per litre to ₹11.5 per litre, and the ATF export levy increased by 50 paise per litre to ₹11 per litre.

Why did India adjust export levies?

To align with average international benchmark prices and safeguard domestic fuel availability by discouraging exports.

Related stories