The government has made a major change to export taxes on petroleum products for the second half of August.
From August 15, the export duty on petrol has been completely removed. At the same time, the government has reduced the export levies on diesel and aviation turbine fuel (ATF).
The revised rates will apply for the fortnight from August 15 to August 31 and are applicable to petroleum products cleared for export.
Petrol Export Duty Now Zero
The additional export levy on petrol has been reduced to nil from ₹3.5 per litre.
The government has removed both the Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC) applicable to petrol exports for this period.
For diesel exports, the levy has been reduced to ₹24 per litre from ₹25.5 per litre.
The export levy on ATF has also been cut to ₹19.5 per litre from ₹22 per litre.
New Export Levies From August 15
| Petroleum Product | Earlier Levy | New Levy |
|---|---|---|
| Petrol | ₹3.5/litre | Nil |
| Diesel | ₹25.5/litre | ₹24/litre |
| ATF | ₹22/litre | ₹19.5/litre |
Why Were the Levies Cut?
The latest changes partly reverse the increase announced on August 3.
At that time, the petrol export levy was increased from ₹2.5 to ₹3.5 per litre.
The total levy on diesel exports was raised from ₹15.5 to ₹25.5 per litre, while the ATF levy increased from ₹14.5 to ₹22 per litre.
The latest notification brings all three rates down from those August 3 levels.
The diesel levy has been reduced by ₹1.50 per litre, while the ATF levy has been cut by ₹2.50 per litre.
No Direct Change in Domestic Petrol and Diesel Prices
There is an important point that consumers should keep in mind.
The latest notification applies only to petroleum products exported from India.
It does not change the existing excise duty rates on petrol and diesel sold in the domestic market.
Therefore, the move should not be considered a direct reduction in petrol or diesel prices at Indian fuel stations.
The changes are focused on additional taxes imposed on petroleum products sold overseas.
Why Does the Government Change Export Taxes?
The government reviews petroleum export levies every two weeks.
The rates are adjusted based on average international prices of crude oil, petrol, diesel and ATF during the period since the previous review.
The export levy system was introduced in March 2026 amid uncertainty in global energy markets following the West Asia crisis.
The objective is to prevent excessive exports when international prices make overseas sales more attractive and ensure adequate availability of petroleum products in the domestic market.
When global prices rise sharply, refiners may have a greater incentive to export fuel.
Higher export levies can make overseas sales less attractive and encourage supplies to remain available in India.
For the August 15-31 period, petrol exports will carry no additional levy, while diesel exports will attract ₹24 per litre and ATF exports will attract ₹19.5 per litre.
