The government removed the export levy on petrol for the August 15-31 fortnight, while keeping duties on diesel and aviation turbine fuel (ATF). The revised rates apply only to petroleum products shipped overseas.
Petrol exports will attract neither Special Additional Excise Duty (SAED) nor Road and Infrastructure Cess (RIC) during the period. Diesel exports will continue to face an SAED of Rs. 24 per litre. ATF exports will carry an SAED of Rs. 19.5 per litre.
The Finance Ministry notified the changes on August 14. The move is part of the government's fortnightly review of export levies on petroleum products.
The latest revision creates a clear difference between the three products. Petrol exporters will have no levy to pay for the current fortnight. Diesel and ATF exporters will continue to face specific charges.
The government reviews these rates every two weeks. The review considers average international prices of crude oil, petrol, diesel and ATF recorded since the previous assessment.
The export levies were introduced in March 2026 during the West Asia crisis. The policy was designed to discourage overseas sales of key petroleum products and support domestic availability.
The latest decision does not change excise duty rates on petrol and diesel sold within India. The revised rates apply only to products cleared for export.
This means the petrol levy cut should not be read as a direct reduction in the taxes charged on fuel purchased by Indian consumers. Retail fuel prices in the domestic market are governed separately from the export levies covered by the notification.
For exporters, however, the change lowers the tax burden on petrol shipments during the current review period. The government can revise the rates again after August 31 as part of its regular review process.
The decision signals a softer levy position for petrol exports at a time when global energy prices continue to influence the government's assessment of petroleum trade.
The immediate change is limited to the August 15-31 period. Any further reduction, continuation or restoration of the petrol levy will depend on the next review and the international price trends considered by the government.
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