Diesel and ATF export levies cut to ₹24 and ₹19.5 per litre, respectively.
Petrol export duty removed, falling to nil from ₹3.5 per litre.
Revised petroleum export taxes take effect from August 15 amid volatile oil prices.
The government has cut the windfall tax on diesel and aviation turbine fuel (ATF) exports and removed the export duty on petrol, with the revised rates taking effect from August 15.
The total levy on diesel exports has been reduced to ₹24 per litre from ₹25.5 per litre, while the levy on ATF exports has been cut to ₹19.5 per litre from ₹22 per litre.
1 August 2026
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The export duty on petrol has been reduced to nil from ₹3.5 per litre, according to notifications issued by the Finance Ministry on August 14.
The latest revision partly reverses the increase announced earlier this month, when the government raised export levies on all three fuels.
Diesel, ATF Levies Cut
On August 3, the government had raised the petrol export duty to ₹3.5 per litre from ₹2.5 per litre. The total levy on diesel was increased to ₹25.5 per litre from ₹15.5 per litre, while the ATF levy was raised to ₹22 per litre from ₹14.5 per litre.
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The latest changes bring some relief to refiners and exporters compared with the rates that were in force since August 3. However, the levies on diesel and ATF remain above their levels before that increase.
The Centre reviews export levies on petroleum products every fortnight, with the rates linked to movements in international crude oil and petroleum product prices.
The latest changes come as global oil prices remain volatile, with developments in the West Asia conflict continuing to influence crude and refined fuel markets. The fortnightly revisions allow the government to adjust the levies in response to changes in global market conditions.
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The government had raised export levies sharply at the beginning of August. The diesel levy increased by ₹10 per litre in that revision, while the ATF levy rose by ₹7.5 per litre. The petrol export duty was increased by ₹1 per litre.
Windfall Tax Regime Returns
India first introduced a windfall tax regime in July 2022 after a sharp rise in global crude oil prices. The framework covered domestically produced crude oil as well as exports of petrol, diesel and ATF. The government withdrew the earlier regime in December 2024.
The export levy regime was reintroduced in March 2026 amid another surge in global oil prices linked to the conflict in West Asia. The government introduced export levies on petrol, diesel and ATF to discourage exports and help ensure domestic availability of petroleum products.
Petrol initially carried a nil levy but was brought under a positive export duty from May.
Since then, the rates have been revised several times as global oil prices and refined-product markets have changed. The rates were revised on July 1 and again on July 16 before the August 3 increase.
The latest notification marks the second revision to petroleum export levies this month.
No Direct Impact On Domestic Pump Prices
The revised duties apply to petroleum products exported from India and do not change the excise duty on petrol or diesel sold in the domestic market.
As a result, the latest revision by itself should not lead to a change in petrol or diesel pump prices for domestic consumers.
The immediate impact will instead be on refiners and exporters, whose tax liability on overseas shipments will change under the revised rates.
The government can review these levies every fortnight and revise them depending on prevailing international oil and petroleum product prices.
