Centre raises export duty on petrol to Rs 2.5 a litre, cuts diesel levy to Rs 8.5

Diesel export levy halved, petrol export duty up, ATF steady: here’s the full rate table effective October 16

October 16, 2026

Excise duty on petrol and diesel sold for domestic consumption is unchanged. The revised rates apply only to exports

The new rates are effective from October 16 and will apply for the next fortnight

The Centre has changed the export levies on fuel for the next fortnight. Export duty on petrol is going up, while the levy on diesel exports is being reduced. The changes come as part of the government’s regular review of taxes on petroleum products, amid volatility in global energy markets.

What changes

The Special Additional Excise Duty (SAED) on petrol exports has been raised from Rs 0.50 per litre to Rs 2.5 per litre. On diesel exports, it has been cut from Rs 16 per litre to Rs 8.5 per litre. The Road and Infrastructure Cess on exports of both fuels remains nil.

The export duty on aviation turbine fuel (ATF) stays at Rs 10.5 per litre, all of it as SAED.

The new rates are effective from October 16, following the previous revision on October 1.

Why the levies exist

The export levies on petrol, diesel and ATF were introduced on March 27, 2026, to keep enough fuel available at home by discouraging exports during the West Asia crisis. Every fortnight, the government reviews the rates against the average international prices of crude oil and fuels over the period since the last review.

The mechanism is meant to prevent excessive exports when global prices might tempt exporters to divert supplies away from the domestic market.