India has revised export duties on petrol, diesel and aviation turbine fuel (ATF), with the new rates taking effect from August 15. The move comes just days after the government had raised levies on the three petroleum products, partly reversing that increase. Under the latest notification, the export duty on petrol has been brought down to zero from Rs 3.5 per litre. The levy on diesel exports has been reduced to Rs 24 per litre from Rs 25.5, while the duty applicable to ATF shipments has been lowered to Rs 19.5 per litre from Rs 22.

The revised rates apply specifically to petroleum products cleared for export. The government has previously clarified that adjustments to export duties do not affect the excise duty applicable to petrol and diesel sold within the domestic market.

Petrol Export Duty Brought Down To Zero

The latest changes mark a significant reversal for petrol exporters. The government has scrapped the Rs 3.5-per-litre export levy that was introduced earlier this month, taking the duty back to nil.

Diesel and ATF exporters, meanwhile, will see a smaller reduction in their respective levies. Diesel now attracts a total export duty of Rs 24 per litre, compared with Rs 25.5 earlier. ATF exports will be charged Rs 19.5 per litre instead of Rs 22.

The latest adjustment reflects the Centre’s fortnightly review mechanism for petroleum export levies.

August 3 Fuel Duty Hike Partly Rolled Back

The revision follows the government’s August 3 decision to increase export duties across all three fuels. At that time, the petrol levy was raised to Rs 3.5 per litre from Rs 2.5, while the total duty on diesel exports jumped to Rs 25.5 per litre from Rs 15.5.

The ATF export duty was also increased substantially, moving to Rs 22 per litre from Rs 14.5.

The Rs 25.5-per-litre levy on diesel was made up of two components — Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC). Therefore, the total levy did not represent SAED alone.

The latest notification effectively reverses a portion of the August 3 increase, particularly in the case of petrol.

Why The Government Reviews Export Levies Every Two Weeks

Petroleum export duties are reviewed by the Centre every fortnight. The rates are determined based on average international prices for crude oil and refined petroleum products, including petrol, diesel and ATF, recorded since the previous review.

Depending on the product and the rates notified during each review, the government can levy duties through SAED, RIC or a combination of the two.

The current system was introduced on March 27, 2026, when export duties of Rs 21.5 per litre on diesel and Rs 29.5 per litre on ATF were imposed. At that stage, petrol exports were not subject to an export levy.

The government had said that international prices of crude and refined fuels had risen amid the West Asia conflict, making overseas sales more attractive for domestic refineries. The export duties were introduced with the stated objective of ensuring adequate domestic availability of diesel and ATF.

Petrol Added To Export Duty Regime In May

Petrol was brought into the export-duty framework on May 16, when the government introduced a Rs 3-per-litre levy.

During the same review, the diesel export duty was reduced from Rs 23 to Rs 16.5 per litre, while the ATF levy was lowered from Rs 33 to Rs 16 per litre.

The subsequent revisions demonstrate how frequently the government has been recalibrating petroleum export duties in response to changes in international fuel prices and market conditions.

Windfall Tax Framework Dates Back To 2022

India’s broader windfall tax framework was first introduced in July 2022, following a sharp increase in global crude oil prices. The regime initially covered domestically produced crude oil as well as exports of petrol, diesel and ATF.

The government later scrapped the framework in December 2024, removing the levy on domestic crude production and eliminating export duties on refined petroleum products.

However, rising crude oil and refined-fuel prices during the West Asia conflict prompted the Centre to revive export levies on diesel and ATF in March 2026. Petrol was subsequently brought under the system in May.

Get Latest News Live on Times Now along with Breaking News and Top Headlines from Business, Economy and around the World.