Diesel ATF Export Duty Cut takes effect from October 1, 2026, as the Centre has reduced the windfall tax on exports of diesel and aviation turbine fuel (ATF).
The change applies for the fortnight beginning October 1.
The Finance Ministry revised the special additional excise duty (SAED) rates along with the applicable road and infrastructure cess.
The latest move changes the tax burden on exporters while leaving the domestic fuel duty structure unchanged.
Diesel ATF Export Duty Cut Changes Rates
The duty on diesel exports has been reduced to Rs 16 per litre from the earlier Rs 20 per litre.
This means the levy has come down by Rs 4 per litre for the current fortnight.
For ATF exports, the SAED has been cut to Rs 10.5 per litre from Rs 15 per litre.
The reduction lowers the export levy by Rs 4.5 per litre compared with the previous rate.
The duty on petrol exports, meanwhile, remains unchanged at Rs 0.5 per litre for the next fortnight.
What Changes From October 1
The revised rates are effective from October 1 and apply to exports rather than fuel cleared for domestic consumption.
The Finance Ministry has not changed the existing duty rates on petrol and diesel sold in the domestic market.
This distinction is important for consumers.
The latest notification does not amount to a direct reduction in the excise duty charged on petrol or diesel supplied for consumption within India.
The export duties are reviewed every fortnight, with rates being adjusted according to international crude oil and petroleum product prices.
The latest reduction follows another cut announced on September 16.
Why The Government Revises Windfall Tax
The Centre had introduced export duties on diesel and ATF in March 2026 amid escalating tensions in West Asia.
The levy was intended to support domestic fuel availability and limit incentives to export petroleum products when international prices were elevated.
A similar levy was imposed on petrol exports from May 16. Since then, the government has periodically revised the rates based on changing market conditions.
The latest decision therefore affects fuel exporters more directly than ordinary motorists.
For domestic consumers, the key point is that the October 1 notification does not change the existing excise duty rates on petrol and diesel cleared for domestic consumption.
What Fuel Exporters Need To Know
For exporters, the lower diesel and ATF levies reduce the tax component applicable to shipments during the current fortnight.
However, the rates are subject to further review as the government continues its periodic assessment of international oil and petroleum-product prices.
The change also shows how the windfall tax framework is being adjusted as global energy-market conditions evolve. Any subsequent revision will depend on the government’s next fortnightly review.
