The Union Finance Ministry has revised export duties on petroleum products, reducing the levy on diesel and aviation turbine fuel (ATF) while increasing the export duty on petrol. The revised rates came into effect from July 1 and will remain applicable for the current fortnight.
Under the latest revision, the export duty on diesel has been reduced from ₹14 per litre to ₹8.5 per litre, providing a significant relief to exporters. Similarly, the levy on aviation turbine fuel (ATF) has been lowered from ₹12.5 per litre to ₹7.5 per litre. However, the government has increased the export duty on petrol from ₹1.5 per litre to ₹4 per litre.
Alongside the duty revisions, the government has expanded the list of countries exempt from these export levies. Mauritius and Maldives have now been added to the exemption list, joining Nepal, Bhutan, Bangladesh and Sri Lanka, which were already covered under the policy. The exemptions continue to be implemented through India’s state-owned oil marketing companies.
The export duties were first introduced on March 27 amid heightened geopolitical tensions in West Asia, with the objective of ensuring adequate domestic availability of petroleum products by discouraging excessive exports. Since then, the government has been reviewing the levy every fortnight and adjusting the rates in line with changes in global crude oil prices, domestic fuel availability and market conditions.
The latest reduction in duties on diesel and ATF is expected to improve the competitiveness of Indian fuel exports, particularly as global energy markets continue to stabilise. At the same time, the higher levy on petrol reflects the government’s efforts to balance export opportunities with the need to safeguard domestic fuel supplies.
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