Govt cuts diesel, ATF export levies from October 1; petrol duty unchanged

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NEW DELHI: The central government has cut export levies on diesel and aviation turbine fuel (ATF) for the second consecutive fortnight, with the duty on diesel lowered to Rs 16 per litre and that on ATF to Rs 10.5 per litre from October 1, according to notifications issued by the Ministry of Finance.

The diesel export levy has been reduced by Rs 4 per litre from the Rs 20 per litre rate applicable during the previous fortnight, while the ATF levy has been cut by Rs 4.5 per litre from Rs 15 per litre. The levy on petrol remains unchanged at Rs 0.5 per litre.

Since September 1, the diesel export levy has been cut by Rs 9 per litre to Rs 16 per litre, while the ATF levy has been reduced by Rs 8.5 per litre to Rs 10.5 per litre. The latest notifications amend the government’s March 26 notifications governing the export levies. The revised rates will take effect from October 1, 2026.

The levies on petrol, diesel and ATF were introduced from March 27, 2026, to discourage exports and support domestic availability of petroleum products amid the West Asia crisis. The rates are reviewed every fortnight based on average international prices of crude oil, petrol, diesel and ATF during the period since the previous review.

The latest move therefore continues the government’s fortnightly adjustment of export levies, with the next rates to be determined through the same review mechanism and the prevailing international prices of petroleum products.

There is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption, according to the explanation accompanying the notification. The government had last revised the levies with effect from September 16, when the diesel duty was reduced to Rs 20 per litre, ATF to Rs 15 per litre and petrol to Rs 0.5 per litre. (ANI)

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