India lifts diesel, jet fuel export levies

India has increased export levies on key petroleum products in its latest fortnightly review. The Special Additional Excise Duty on diesel exports has been raised to Rs 14 per litre from Rs 13.5 per litre. For Aviation Turbine Fuel, the export levy has been lifted to Rs 12.5 per litre from Rs 9.5 per litre. These adjustments apply specifically to exports of these fuels and are part of the government’s periodic calibration of export taxes.

The export duty on petrol has been left unchanged at Rs 1.5 per litre in the same review. This creates a differentiated tax structure across major petroleum products, with higher rates now in place for diesel and jet fuel exports while petrol export levies remain steady.

The revised export rates were formally notified to take effect from June 16, 2026. They will apply for the forthcoming fortnight under the established fortnightly review mechanism used for these levies. Under this system, export duties on petroleum products are periodically reassessed and adjusted based on prevailing trends.

The latest move continues the use of short review intervals for export-related taxes, allowing the authorities to respond to changes in international pricing and margins for refined products. Each review sets rates that remain in force only for the designated two-week period, subject to further revision in subsequent notifications.

The government has clarified that the latest adjustments apply only to export levies and do not alter excise duty rates for fuels sold in the domestic market. Excise duties on petrol and diesel for domestic consumption remain unchanged under the current notification.

By separating export-specific duties from domestic excise, the authorities maintain a distinction between taxes aimed at export flows and those affecting domestic retail fuel prices. The current revision therefore targets export realizations on diesel and Aviation Turbine Fuel without directly changing the tax burden on domestic fuel consumers.