India Adjusts Export Duties on Diesel and ATF, Removes Petrol Export Levy

India has announced changes to the export duties on key petroleum products, increasing charges on diesel and aviation turbine fuel (ATF) exports, and completely removing the export duty on petrol. This adjustment is part of ongoing efforts to maintain sufficient domestic fuel supplies during uncertain global market conditions.

Effective from October 31, the government raised the export duty on diesel from ₹8.50 per litre to ₹11.50 per litre. Similarly, the export duty on ATF increased by 50 paise to ₹11 per litre, up from ₹10.50. Meanwhile, the ₹2.50 per litre export duty previously imposed on petrol has been withdrawn, reducing the levy to zero. These revised rates will remain in effect for the next two weeks, following the standard fortnightly review cycle.

The export duties on petrol, diesel, and ATF were first introduced on March 27, 2026. The move was aimed at discouraging exports to ensure adequate domestic availability of these essential petroleum products amid the ongoing crisis in West Asia, which has affected global oil supply chains. The government periodically reviews these levies, basing adjustments on the average international prices of crude oil and refined products since the last review.

India's refining sector continues to be a major exporter of petroleum products, contributing significantly to global energy markets. However, fluctuations in crude oil prices and geopolitical tensions have prompted the government to use export duties as a strategic instrument to balance export volumes with domestic demand. Such measures help prevent shortages or excessive price volatility within the country.

It is important to note that these changes in export duties do not affect the excise duties on petrol and diesel sold within India. Domestic taxes remain unchanged, ensuring stability in consumer pricing for these fuels.

The last update to export duties came into effect on October 16, making this the second adjustment within a month. Regular monitoring and revisions are designed to respond swiftly to international market movements and safeguard the interests of Indian consumers and industries reliant on petroleum products.

The export duty policy reflects a broader trend in energy regulation where governments intervene to balance trade considerations with domestic needs. As global fuel markets remain unpredictable, especially with geopolitical disruptions in key oil-producing regions, India’s approach aims to mitigate supply risks while maintaining its role in the international petroleum trade.

Overall, these adjustments underscore the government’s commitment to managing energy security amid external pressures. The removal of the petrol export duty may also signal an easing of supply concerns for that fuel segment, while the increased levies on diesel and ATF exports suggest continued caution in managing these critical sectors.