India Cuts Export Duties on Petrol, Diesel Amid Global Price Volatility

The Indian government has made a significant move to boost exports by reducing export duties on petrol, diesel, and aviation turbine fuel (ATF). Effective from Saturday, the government has set the petrol levy at zero and reduced the charges on diesel and ATF. The revised rates apply only to petroleum products cleared for export.

The reduction in export duties comes after the Centre raised levies on these fuels just two weeks ago. On August 3, the petrol export duty was increased to Rs 3.5 per litre from Rs 2.5, while the levy on diesel was raised to Rs 25.5 per litre from Rs 15.5. The ATF export duty was also increased to Rs 22 per litre from Rs 14.5.

The current export-duty framework was introduced in March 2026 amid a spike in international crude oil and refined fuel prices linked to the West Asia conflict. The government reviews export levies every fortnight, based on average international prices of crude oil, petrol, diesel, and ATF recorded since the previous review.