Export levy on petrol hiked, diesel lowered
The government has raised the export levy on petrol while cutting the levy on diesel and leaving the charge on aviation turbine fuel (ATF) unchanged in its latest fortnightly review. The changes take effect for a 15-day period starting October 16. Duties on retail fuels for domestic consumption remain unchanged.
New rates effective October 16
Under the revised structure, the export levy on petrol has been increased to ₹2.5 per litre from ₹0.5 per litre in the previous review. The levy on diesel exports has been reduced to ₹8.5 per litre from ₹16 per litre. The levy on ATF remains steady at ₹10.5 per litre.
The updated rates will apply for the fortnight beginning October 16, after which they will be reassessed in line with the established review cycle.
Fortnightly review and rationale
The government has been conducting fortnightly reviews of export levies since March 27, against the backdrop of the conflict in West Asia. These adjustments are calibrated based on the average international benchmark prices of crude oil and refined products—petrol, diesel and ATF—observed since the previous review.
The stated objective of this mechanism is to ensure adequate domestic availability of retail fuels by disincentivising exports when global price movements and domestic supply conditions warrant such action.
Domestic duties unchanged
There is no change in the duty on retail fuels intended for domestic consumption as part of this review. The announcement pertains solely to levies applied to exports of petrol, diesel and ATF.
Context and implications
By linking the export levies to international benchmark prices and revisiting them every two weeks, authorities aim to respond swiftly to changes in global energy markets while safeguarding domestic fuel supplies. The increase in the petrol export levy and the simultaneous reduction for diesel reflect the government’s effort to fine-tune the export disincentives across products in line with recent price trends and supply considerations.
The unchanged levy on ATF indicates stability in the government’s approach to jet fuel exports during this cycle, even as calibrations are made to petrol and diesel. The next review will follow the regular fortnightly schedule.
