Govt scraps export duty on petrol; hikes levies on diesel, ATF — check details here

Govt scraps export duty on petrol; hikes levies on diesel, ATF — check details hereAI Quick ReadThe Centra has eliminated the additional excise duty applicable on petrol exports, while increasing export taxes on diesel and aviation turbine fuel (ATF), according to a Finance Ministry notification issued on Saturday.

The duty changes will be effective from October 31. However, there is no change in the existing duty rates on petrol and diesel cleared for domestic consumption, the government said. Under the revised structure, the export duty on petrol has been reduced to zero from ₹2.50 per litre, for the next fortnight.

Meanwhile, the levies on diesel and aviation turbine fuel (ATF) have been increased. The rate of special additional excise duty (SAED), along with road and infrastructure cess on export of diesel, will now be ₹11.5 a litre from ₹8.5 a litre.

The government first imposed export duties on diesel and ATF on March 27, with rates revised every fortnight amid escalating tensions in West Asia. The conflict began nearly nine months ago, when the United States and Israel launched coordinated military strikes against Iran.

These geopolitical tensions in West Asia disrupted crude oil supplies and pushed international prices higher. Subsequently, from May 16, the government also imposed an export levy on petrol. The windfall tax was introduced to increase domestic availability of the fuel amid the war in West Asia.

It was also aimed at preventing exporters from benefiting disproportionately from the price difference, as global crude oil prices surged following the outbreak of the conflict. India remains significantly exposed to disruptions in West Asia, given its dependence on the region for crude oil supplies.

Before the conflict began, nearly half of the country's crude oil imports passed through the Strait of Hormuz, a key shipping route connecting the Persian Gulf to international markets. Disruptions to commercial shipping through the Strait forced India to diversify its crude oil sources while managing additional supply risks.

While West Asia has historically supplied the bulk of India's crude, Russia’s share expanded significantly during the conflict. Between March and June 2026, Russia accounted for 39% of India’s crude imports, up from 32% in the year-ago period, according to an earlier Mint report.

Supplies from Saudi Arabia were disrupted as the key shipping route from the Gulf, the Strait of Hormuz, was shut. Further, the share of Iraq, a key supplier to India, declined sharply from 18% to 3%. Meanwhile, several countries' share in India’s crude import basket enhanced, notably Iran and Venezuela, both of which involved a tacit nod from the US for India to increase crude purchases.(with inputs from PTI) Eshita Gain is a digital journalist at Mint, where she joined in May 2025.

She writes on corporate developments, personal finance, markets, and business trends, with a focus on delivering timely and relevant stories to a broad audience. While her core beat lies in business and finance, she is not confined to a single niche and frequently explores stories across domains, including international relations and policy developments.

She holds a postgraduate diploma in business and financial journalism by Bloomberg from the Asian College of Journalism (ACJ), Chennai. During her time there, she received rigorous training in tracking financial data, interpreting corporate filings, and reporting on business developments.

She has pursued her graduation from St. Joseph’s University, Bengaluru in a multi-disciplinary course. Her majors included Journalism, International Relations, peace and conflict studies. Eshita has previously worked in digital marketing, which enables her to write SEO friendly copies that are clear and engaging.

Her primary interest lies in breaking down complex subjects and writing clear, accessible copies that inform readers. She aims to bridge the gap between technical financial language and everyday understanding. Outside the newsroom, Eshita enjoys reading non-fiction, and exploring new places, constantly seeking fresh perspectives and stories beyond headlines.

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