Business EconomyPosted at: Nov 1 2026 1:14AM


Centre raises export duty on diesel, aviation fuel; scraps Rs 2.50 per litre levy on petrol

New Delhi, Oct 31 (UNI) The Centre on Saturday raised the special additional excise duty on diesel exports by Rs 3 to Rs 11.50 per litre and on aviation turbine fuel (ATF) by 50 paise to Rs 11 per litre, while abolishing the Rs 2.50 per litre levy on petrol exports, according to Finance Ministry notifications effective immediately.
The revised rates, announced by the Department of Revenue through two notifications published in the Gazette of India, form part of the government's periodic adjustments to windfall taxes on petroleum product exports.
Under Notification No. 55/2026-Central Excise, the special additional excise duty on petrol exports has been reduced to nil from Rs 2.50 per litre, while the rate on high-speed diesel exports has been increased to Rs 11.50 per litre from Rs 8.50.
The previous rates were introduced on October 16 through Notification No. 54/2026-Central Excise, issued on October 15.
In a separate notification, No. 56/2026-Central Excise, the government increased the levy on aviation turbine fuel exports to Rs 11 per litre from Rs 10.50. The earlier rate had been in force since October 1 following an amendment issued on September 30.
Both notifications, dated October 31, amend the excise duty framework introduced on March 26, 2026, under Notifications No. 06/2026-Central Excise and 08/2026-Central Excise.
The changes have been made under Section 5A of the Central Excise Act, 1944, read with Section 147 of the Finance Act, 2002.
The government said the revised provisions would come into force from the date of their publication in the Official Gazette. The changes apply to specified petroleum product exports and do not alter the existing excise duty rates on petrol and diesel cleared for domestic consumption.
The original March 26 notification governing petrol and diesel exports excludes supplies for domestic consumption and exports by public-sector oil companies to Nepal, Bhutan, Bangladesh and Sri Lanka from its specified export-duty arrangement.
A separate exemption under the March framework also covers aviation turbine fuel supplied for purposes other than specified exports. The latest adjustments come against the backdrop of the government's decision earlier this year to impose export duties on petroleum products amid tensions in West Asia and concerns over domestic fuel availability.
The export levies were introduced to discourage excessive overseas shipments and prevent exporters from benefiting disproportionately from price differentials driven by elevated international crude oil prices.
The government initially imposed the export-duty framework on diesel and aviation turbine fuel in March, with petrol exports subsequently brought under the levy arrangement in May.
Since then, the Centre has periodically revised the rates in response to changing market conditions. The latest revision increases the tax burden on diesel and aviation fuel exports while removing the special additional excise duty on petrol exports.
The two amendments, published under G.S.R. 963(E) and G.S.R. 964(E), were signed by Dheeraj Sharma, Under Secretary in the Department of Revenue. The revised rates will remain applicable until amended by subsequent government notifications.
UNI KK RN
Tags: #Centre raises export duty on diesel# aviation fuel; scraps Rs 2.50 per litre levy on petrol
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