---
title: "Indian Government Raises Export Taxes on Petrol, Diesel, and Jet Fuel in Fortnightly Review"
url: https://projectchintan.com/article/indian-government-raises-export-taxes-on-petrol-diesel-and-jet-fuel-in-fortnight-20pz8
publisher: Project Chintan
author: Project Chintan Newsroom
section: Business
published: 2026-08-03T15:01:30.000Z
modified: 2026-08-03T19:01:16.020Z
language: en-IN
---

# Indian Government Raises Export Taxes on Petrol, Diesel, and Jet Fuel in Fortnightly Review

The Ministry has implemented higher levies on exported fuels to prioritize domestic energy security amid ongoing regional instability. New rates see significant increases for diesel and aviation turbine fuel to discourage international sales.

## Key takeaways

- Export duty on petrol increased to ₹3.5 per litre, while diesel rose to ₹24 per litre.
- Aviation turbine fuel (ATF) export levy now stands at ₹22 per litre following the August 3 review.
- Domestic excise duties for petrol and diesel remain unchanged despite the export tax hike.
- The government uses fortnightly reviews to adjust levies based on international crude and product prices.
- These measures were first implemented on March 27 to safeguard local fuel availability during the West Asia crisis.

## Strategic Shifts in Export Levies

In a move to stabilize domestic supply chains, the Indian government has adjusted its fiscal policy regarding fuel exports. During the most recent fortnightly review on August 3, 2026, authorities increased the export duty on petrol to ₹3.5 per litre. This adjustment coincides with steeper hikes for other distillates, as the levy for diesel rose to ₹24 per litre and aviation turbine fuel (ATF) climbed to ₹22 per litre.

## Comparison with Previous Fiscal Periods

These figures represent a significant escalation from the rates established during the prior assessment on July 16. In that cycle, the export levy for petrol stood at a lower ₹2.5 per litre. Simultaneously, ATF and diesel were taxed at ₹15.5 and ₹14.5 per litre, respectively. Despite these shifts in export-oriented duties, the excise levy applied to petrol and diesel destined for internal domestic consumption has not been altered.

## Mechanisms of Domestic Protection

The policy framework driving these changes was initiated on March 27 as a direct response to the West Asia crisis. By making exports less financially attractive, the government aims to ensure that retail fuel stocks remain sufficient for the local market. The administration calculates these effective rates every two weeks based on several criteria: - Current average international prices of crude oil. - Prevailing global market rates for petrol and diesel. - Jet fuel price fluctuations since the previous review period. By adjusting these levies in real-time, officials attempt to buffer the domestic economy from international price volatility and supply disruptions.

Source: The Hindu — Economy

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Canonical: https://projectchintan.com/article/indian-government-raises-export-taxes-on-petrol-diesel-and-jet-fuel-in-fortnight-20pz8
Reported from: The Hindu — Economy