India has lowered the export levy on diesel and ATF for the second straight fortnight, while keeping the petrol export duty unchanged
India has cut the windfall tax on exports of diesel and aviation turbine fuel (ATF) for the second consecutive fortnight, lowering the levy on fuel exporters from October 1.
The special additional excise duty on diesel exports has been reduced to Rs 16 per litre from Rs 20 per litre. The levy on ATF exports has been cut to Rs 10.5 per litre from Rs 15 per litre, according to a Finance Ministry notification issued on Wednesday.
The export duty on petrol has been kept unchanged at Rs 0.50 per litre for the fortnight beginning October 1.
The latest reduction means diesel exporters will pay Rs 4 less per litre in export levies, while the levy on ATF exports will fall by Rs 4.50 per litre.
What changes from October 1
The latest rates apply only to exports. There is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption, according to the Finance Ministry.
The government reviews petroleum product export levies every fortnight based on movements in international crude oil and petroleum product prices.
The latest move follows a reduction announced on September 16. At that time, the diesel export levy was cut to Rs 20 per litre from Rs 25 per litre, while the ATF levy was lowered to Rs 15 per litre from Rs 19 per litre.
More from BusinessThe petrol export levy was also reduced during the September review, falling to Rs 0.50 per litre from Rs 1.50 per litre. It has now been retained at the same level.
Why the government imposed the levy
India introduced export levies on petrol, diesel and ATF from March 27, 2026, amid the West Asia crisis. The government said the measures were aimed at ensuring domestic availability of petroleum products by discouraging exports.
The levies were also intended to prevent exporters from taking advantage of price differences when global crude and petroleum product prices were elevated.
The government has since adjusted the rates every two weeks based on average international prices of crude oil, petrol, diesel and ATF.
Beginning May 16, the export levy regime was extended to petrol. The rates have moved up and down several times as global energy market conditions changed.
What it means for exporters
The latest cuts reduce the tax payable by Indian refiners and other exporters on overseas sales of diesel and ATF.
The impact on refiners will depend on international product prices, refining margins, export volumes and crude costs. A lower export levy can reduce the tax burden on overseas sales, although the overall economics of exports will continue to depend on global fuel prices.
