In its latest fortnightly review, the Indian government scrapped the export duty on petrol and lowered the levies on diesel and aviation turbine fuel (ATF) to ₹24 and ₹19.5 per litre respectively. The move aims to secure domestic fuel supplies amid ongoing geopolitical tensions.
Key Takeaways
- Petrol export duty reduced to zero.
- Diesel export duty cut to ₹24 per litre.
- ATF export duty set at ₹19.5 per litre.
In its latest fortnightly review, the Indian government eliminated the export duty on petrol and lowered the levies on diesel and aviation turbine fuel (ATF) to ₹24 and ₹19.5 per litre respectively, while keeping domestic excise duties unchanged.
Since the peak of the West Asia conflict earlier this year, the government has been reviewing export levies every two weeks since March 2026 to ensure sufficient domestic fuel availability by discouraging exports.
Historical Background
India has historically balanced export incentives with domestic price stability, imposing varying export duties to curb overseas shipments when local markets faced shortages. In 2024, a ₹3.5 per litre export duty on petrol was introduced to protect domestic supply.
Export Duty Comparison
| Fuel | Previous Duty | Current Duty |
|---|---|---|
| Petrol | ₹3.5/L | Zero |
| Diesel | ₹25.5/L | ₹24/L |
| ATF | ₹22/L | ₹19.5/L |
Why This Matters
BozokMedia analysis shows that trimming export duties can help stabilise domestic fuel prices and support economic resilience, especially amid volatile global oil markets.
"Reducing export duties will likely boost domestic fuel availability, but the government must offset potential revenue losses with alternative fiscal measures," said energy analyst Dr. Priya Mehta.
Frequently Asked Questions
Question 1: Will this move lower petrol prices for Indian consumers?
Answer: It is expected to ease domestic supply pressures, which could translate into more stable or slightly lower prices.
Question 2: Are diesel and ATF exports likely to increase?
Answer: The reduced duties are not an incentive; they are intended to keep exports in check while ensuring domestic needs are met.
