India cuts export levies on petrol, diesel and ATF effective September 16

The export levy has been cut by Rs 1 per litre on petrol, Rs 5 on diesel and Rs 4 on ATF, bringing the rates down to Rs 0.5, Rs 20 and Rs 15 per litre, respectively.

NEW DELHI: The government has cut export levies on petrol, diesel and aviation turbine fuel (ATF), with the revised rates taking effect from September 16 for the next fortnight, according to notifications issued by the Finance Ministry. The export levy on petrol has been reduced by Rs 1 per litre to Rs 0.5 per litre, while the total levy on diesel has been lowered by Rs 5 to Rs 20 per litre while the levy on ATF has been cut by Rs 4 to Rs 15 per litre, reported ANI. The changes mark a reversal of the higher rates that came into effect on September 1. At the previous fortnightly review, the government had fixed the petrol levy at Rs 1.5 per litre, the overall diesel levy at Rs 25 per litre and the ATF levy at Rs 19 per litre. Meanwhile, for diesel, the earlier Rs 25-per-litre levy comprised Rs 24 per litre as Special Additional Excise Duty (SAED) and Rs 1 per litre as Road and Infrastructure Cess (RIC). Under the revised rates, SAED has been reduced to Rs 20 per litre, while the RIC has been withdrawn. Separate finance ministry notifications have also revised the SAED on petrol to Rs 0.5 per litre and on diesel to Rs 20 per litre. The levy applicable to ATF exports has been reduced to Rs 15 per litre. The government reviews these export levies every fortnight, based on average international prices of crude oil and petroleum products. The levies were first imposed from March 27, 2026, as the government sought to discourage exports and maintain adequate domestic availability of petroleum products amid the West Asia crisis. The September 1 revision had raised the diesel export levy by introducing a Rs 1-per-litre RIC, which had previously been nil. The latest changes apply only to export levies. There is no change in the existing excise duty rates on petrol and diesel sold for domestic consumption.