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Centre scraps Rs 2.5/litre petrol export duty, hikes diesel levy to Rs 11.5

By · Via Times of India · Published by Everything Blog

In short

Under the latest fortnightly review, the Department of Revenue adjusted the special additional excise duties to match shifting international petroleum prices. While overseas shipments of petrol will no longer carry an additional duty, diesel and jet fuel exports face higher penalties. Notification No. 56/2026-Central Excise formally enacted the higher aviation turbine fuel levy following the previous revision cycle on October 16.

Key points

  • The export duties undergo fortnightly revisions determined by average international price…: The export duties undergo fortnightly revisions determined by average international prices for crude and refined fuels.
  • The government uses these targeted levies to discourage outbound fuel shipments and prote…: The government uses these targeted levies to discourage outbound fuel shipments and protect domestic supply levels.
  • These specific export measures were first introduced on March 27, 2026, amid the West Asi…: These specific export measures were first introduced on March 27, 2026, amid the West Asia crisis and energy price spikes.

Sources checked by our analysis pipeline: 1

NEW DELHI: The Centre has scrapped the Rs 2.5 per litre special additional excise duty (SAED) on petrol exports while raising the levy on high-speed diesel from Rs 8.5 to Rs 11.5 per litre and on aviation turbine fuel (ATF) from Rs 10.5 to Rs 11 per litre, according to notifications issued by the Ministry of Finance on Saturday.

The revised rates have been notified by the Department of Revenue through separate excise notifications. While the changes to petrol and diesel duties have been covered under the relevant excise notification, Notification No. 56/2026-Central Excise specifically provides for the increase in the levy on ATF exports.

All the revised rates took effect on October 31, the date of their publication in the official Gazette.

The export duties on petrol, diesel and ATF were first introduced on March 27, 2026, against the backdrop of the West Asia crisis. The Centre had stated that the move was aimed at discouraging exports to ensure that petroleum products remained available in the domestic market.

The introduction of the levies came amid rising international energy prices…

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