India Cuts Export Levies on Petrol, Diesel and Aviation Turbine Fuel Effective September 16
Why It MattersLower export levies on aviation turbine fuel could ease cost pressure on fuel exporters, though domestic excise duty for aviation and other fuel consumption remains unchanged.
India's Finance Ministry has reduced export levies on petrol, diesel and aviation turbine fuel (ATF), with the revised rates effective from September 16 for a fortnight. The petrol levy has been cut by Rs 1 to Rs 0.5 per litre, the diesel levy lowered by Rs 5 to Rs 20 per litre, and the ATF levy reduced by Rs 4 to Rs 15 per litre.
The reductions reverse higher rates set on September 1, when the petrol levy stood at Rs 1.5 per litre, the diesel levy at Rs 25 per litre and the ATF levy at Rs 19 per litre. For diesel, the previous Rs 25 levy comprised Rs 24 as Special Additional Excise Duty (SAED) and Rs 1 as Road and Infrastructure Cess (RIC); under the revised rates, SAED has been cut to Rs 20 and the RIC withdrawn entirely. Separate notifications revised the SAED on petrol to Rs 0.5 per litre and on diesel to Rs 20 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 introduced on March 27, 2026, to discourage exports and ensure adequate domestic supply of petroleum products amid the West Asia crisis. The latest changes apply only to export levies, with no change to existing excise duty rates on petrol and diesel sold for domestic consumption.
