Key Takeaways
- The government raised the petrol export levy to ₹2.5 per litre.
- The diesel export levy fell to ₹8.5 per litre from ₹16.
- The aviation turbine fuel export levy remained unchanged at ₹10.5 per litre.
The government has revised export levies on petrol and diesel in its latest fortnightly review, effective October 16. The levy on petrol exports has increased to ₹2.5 per litre from ₹0.5 per litre, while the levy on diesel exports has declined to ₹8.5 per litre from ₹16 per litre. The levy on aviation turbine fuel (ATF) remains unchanged at ₹10.5 per litre.
The revised rates will apply for 15 days from October 16. The government has kept duties on petrol and diesel sold for domestic consumption unchanged. The adjustments apply to exports and do not alter the existing duty structure for retail fuels sold within India.
Petrol and diesel export levies revised
The petrol export levy has increased by ₹2 per litre, rising fivefold from the ₹0.5 per litre rate set during the previous review. The new rate brings the levy to ₹2.5 per litre for the current 15-day period.
Diesel exports will face a lower levy of ₹8.5 per litre, compared with ₹16 per litre previously. This represents a reduction of ₹7.5 per litre, or approximately 46.9%. The change lowers the levy applicable to diesel shipments during the period covered by the latest review.
The levy on ATF exports remains at ₹10.5 per litre, with no change from the previous assessment. ATF is used by commercial aircraft, making its pricing relevant to airlines and businesses involved in aviation fuel supply.
For Indian refiners and fuel exporters, the revised rates change the levy payable on exported petrol and diesel. The applicable amount differs by fuel type, with petrol facing a higher charge and diesel a lower one. The unchanged ATF levy maintains the existing rate for aviation fuel exports.
However, the revised export levies do not change the duties on petrol and diesel sold to domestic consumers. Retail fuel prices and export-related charges are separate aspects of the fuel pricing system, and the latest decision concerns the latter.
Fortnightly reviews continue amid the West Asia conflict
The government has conducted fortnightly reviews of fuel export levies since March 27, following the outbreak of conflict in West Asia. These reviews assess international benchmark prices for crude oil, petrol, diesel, and ATF recorded since the preceding assessment.
The government uses these price movements to determine the applicable export levies for each 15-day period. The latest revision reflects a different rate adjustment for petrol and diesel, while leaving the levy on ATF unchanged.
The stated purpose of these levies is to support the domestic availability of retail fuels by discouraging exports. Changes to the charges affect the cost of exporting refined petroleum products and can influence the economics of shipments for refiners and trading businesses.
For businesses operating in India’s petroleum sector, the 15-day validity period means that the current rates apply only for the specified period beginning October 16. Companies involved in refining, fuel distribution, and exports will need to account for the applicable levy when assessing shipments during this period.
The next review may bring further changes depending on international benchmark prices and the government’s assessment. Until then, the petrol export levy stands at ₹2.5 per litre, the diesel export levy at ₹8.5 per litre, and the ATF export levy at ₹10.5 per litre. Domestic petrol and diesel duties remain unchanged under the latest revision.
