Government reduces export duty on diesel and jet fuel, no change in tax rates for petrol

The central government has announced new tax rates for fuel exports, which came into effect on October 1, 2026. Under these recent changes, the export duty on diesel and aviation turbine fuel (ATF) has been reduced. This decision is expected to provide significant relief to companies operating in the energy sector.

According to reports, there has been no change in the export duty applicable to petrol. The previously established tax rates for petrol will continue to remain in effect. The government periodically reviews windfall taxes and export duties based on crude oil prices in the global market and domestic demand.

The reduction in tax on aviation turbine fuel is likely to impact the aviation sector. Fluctuations in ATF prices are directly linked to the cost of air travel. This move by the government is considered a significant policy shift for fuel exporters.

Reducing the tax on diesel exports may provide some convenience to domestic refineries regarding export operations. However, in the case of petrol, the government has decided to maintain its existing policy.

According to information from NDTV India, these changes were implemented starting October 1. Market experts believe this move is an attempt by the government to align with the shifts in energy prices occurring at the global level.

There are no clear indications yet regarding how this change in export duty will affect the retail prices of petrol and diesel for the general public. For now, the old export duty rates for petrol remain effective.

Following these new figures released by the government, the industry is now focused on reviews scheduled for the coming months. This adjustment in fuel export taxes remains a key component of the government's energy policy.