Government Imposes INR 3 Per Litre Excise Duty on Petrol Exports, Cuts Diesel Duty to INR 16.5 Per Litre and ATF Duty to INR 16 Per Litre
The government has revised export taxes on petroleum products, imposing a special additional excise duty (SAED) of Rs 3 per litre on petrol exports while reducing the duty on diesel to Rs 16.5 per litre, effective from Saturday. The notification by the Ministry of Finance stated that the entry of Rs 3 per litre shall be substituted for petrol exports, while diesel has been revised to Rs 16.5 per litre.
New Delhi, May 16: The government has revised export taxes on petroleum products, imposing a special additional excise duty (SAED) of Rs 3 per litre on petrol exports while reducing the duty on diesel to Rs 16.5 per litre, effective from Saturday. The notification by the Ministry of Finance stated that the entry of Rs 3 per litre shall be substituted for petrol exports, while diesel has been revised to Rs 16.5 per litre.
It further said the road and infrastructure cess has been reduced to zero on petrol and diesel exports. Domestic fuel tax rates remain unchanged, according to the government. The fresh SAED levy on petrol exports marks the first such duty since the outbreak of the West Asia conflict. Gig Workers’ Strike Today: Union Calls for 5-Hour Nationwide Bandh Amid Fuel Price Hike, Check Their Demands.
While export duties on diesel and ATF have been reduced from higher levels after a series of revisions in recent months. Earlier, export duty on diesel was revised multiple times. It was first set at Rs 21.50 per litre on March 26, then raised to Rs 55.5 per litre on April 11. Later, it was cut to Rs 23 per litre on April 30, and has now been further reduced to Rs 16.5 per litre. Similarly, aviation turbine fuel (ATF) followed a similar pattern. Global Fuel Price Hike: Amit Malviya Says India Emerged as ‘Striking Exception’ Amid West Asia Conflict; Shares Petrol, Diesel Price Comparison With Other Nations.
The duty was first Rs 29.5 per litre, then increased to Rs 42 per litre. It was later reduced to Rs 33 per litre and has now been brought down to Rs 16 per litre. The windfall tax framework was introduced to ensure adequate domestic fuel availability and curb exports amid volatile global oil markets triggered by the West Asia crisis. Geopolitical tensions remain elevated after the United States and Iran failed to reach a peace agreement, with US President Donald Trump rejecting Iran’s proposal, saying: “I don’t like it — TOTALLY UNACCEPTABLE.”
(The above story first appeared on LatestLY on May 16, 2026 09:45 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).