Centre Cuts Diesel Export Tax To ₹16 And ATF Levy To ₹10.50 Per Litre, Will Fuel Prices Get Cheaper?
· Free Press Journal
Mumbai: The Centre has reduced export levies on diesel and aviation turbine fuel (ATF) for the second straight fortnight, offering some relief to refiners exporting petroleum products from India.
The export levy on diesel has been cut to Rs 16 per litre from Rs 20 per litre. For ATF, the levy has been lowered to Rs 10.50 per litre from Rs 15 per litre. The new rates came into effect from October 1.
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The export levy on petrol remains unchanged at Rs 0.50 per litre.
What Do The Lower Rates Mean?
The latest reduction lowers the tax burden on refiners when they export diesel and ATF. This could improve the returns they earn from selling these fuels in overseas markets.
However, exporters will still have to pay a sizeable levy. The government has not removed the duties completely as it continues to balance export opportunities with the need to maintain adequate fuel supplies in India.
Since September 1, the diesel export levy has fallen by Rs 9 per litre, while the levy on ATF has dropped by Rs 8.50 per litre.
Second Cut In A Fortnight
The government had last revised the rates from September 16, cutting the diesel export levy to Rs 20 per litre and the ATF levy to Rs 15 per litre.
ATF Prices Rise ₹16 Per Litre To ₹137, Marking Third Straight Monthly HikeThe Finance Ministry notified the latest reduction on September 30.
Why Were Export Levies Introduced?
The Centre introduced export levies on petroleum products from March 27, 2026, amid the West Asia crisis. The move was aimed at discouraging excessive exports and ensuring sufficient fuel availability in the domestic market.
Windfall Tax Cut: Government Slashes Petrol, Diesel And ATF Export Duty From September 16 Amid West Asia TensionsThe rates are reviewed every fortnight based on movements in average international prices of crude oil and petroleum products.
Domestic Fuel Taxes Unchanged
The latest changes apply only to fuel exports. They do not change the existing excise duties on petrol and diesel sold in the domestic market.
This means the export tax reduction by itself does not translate into a cut in petrol or diesel prices for consumers in India.