Centre scraps Rs 2.5/litre petrol export duty, hikes diesel levy to Rs 11.5

NEW DELHI: The Centre has scrapped the Rs 2.5 per litre special additional excise duty (SAED) on petrol exports while raising the levy on high-speed diesel from Rs 8.5 to Rs 11.5 per litre and on aviation turbine fuel (ATF) from Rs 10.5 to Rs 11 per litre, according to notifications issued by the Ministry of Finance on Saturday.

The revised rates have been notified by the Department of Revenue through separate excise notifications. While the changes to petrol and diesel duties have been covered under the relevant excise notification, Notification No. 56/2026-Central Excise specifically provides for the increase in the levy on ATF exports. All the revised rates took effect on October 31, the date of their publication in the official Gazette.

The export duties on petrol, diesel and ATF were first introduced on March 27, 2026, against the backdrop of the West Asia crisis. The Centre had stated that the move was aimed at discouraging exports to ensure that petroleum products remained available in the domestic market. The introduction of the levies came amid rising international energy prices and uncertainty over supplies, which had raised concerns about the availability of petroleum products within the country.

Since then, the government has been revising the duties every fortnight. The exercise takes into account the average international prices of crude oil, petrol, diesel and ATF during the period following the previous review. The rates have seen multiple changes since the initial announcement, reflecting movements in international prices.

Before the latest revision, the duties stood at Rs 2.5 per litre on petrol, Rs 8.5 per litre on high-speed diesel and Rs 10.5 per litre on ATF, following the October 16 review.