Govt Revises Fuel Export Taxes: Petrol Duty Increased, Diesel And Aviation Fuel Levies Slashed

India has changed export taxes on key fuels, raising the levy on petrol exports while cutting duties on diesel and aviation turbine fuel, according to a Ministry of Finance statement issued on Friday.

The move follows an increase in retail fuel prices, announced within a day of the tax revision. Retail prices were raised for the first time since the conflict involving the US, Israel and Iran began in February, linking domestic costs and export policy more closely.

Export duty on petrol and diesel: revised government rates

Citing the latest government notification, news agency PTI reported that the duty on exports of petrol has been set at ₹3 per litre. This is the first time such a rate has been applied since the Iran war started, signalling a change in the earlier approach on petrol exports.

PTI also reported that export duty on diesel has been reduced from ₹23 per litre to ₹16.5 per litre, while the levy on aviation turbine fuel now stands at ₹16 per litre, down from ₹33 per litre, easing the burden on these two fuels.

The combination of higher export duty on petrol and lower rates on diesel and aviation turbine fuel highlights a shift in the government’s current tax strategy, aligning export levies with recent retail price changes while keeping all existing conflict-related references unchanged.