The revised export duty on diesel and aviation turbine fuel has come into effect from July 16, while the levy on petrol exports has been reduced as global crude oil prices remain elevated.
The Fuel export tax hike 2026 has come into effect as the Central Government revised the export duty on key petroleum products, increasing the levy on diesel and aviation turbine fuel (ATF) while reducing the tax on petrol exports. The new rates became effective from July 16, 2026, following the latest fortnightly review of fuel export duties.
Diesel and ATF export duties increased
Under the revised notification on the latest fuel export tax hike 2026, the export duty on diesel has been increased from ₹8.5 per litre to ₹15.5 per litre. Similarly, the duty on aviation turbine fuel (ATF) has been raised from ₹7.5 per litre to ₹14.5 per litre.
At the same time, the export duty on petrol has been reduced from ₹4 per litre to ₹2.5 per litre. The revised rates are applicable from July 16.
Why did the government revise the fuel export tax?
The fuel export tax hike 2026 follows a rise in global crude oil prices driven by renewed geopolitical tensions in the Middle East. As per reports, elevated international crude oil prices influence refining economics and export profitability, prompting periodic reviews of export duties.
The government reviews these export duties every fortnight and adjusts them according to prevailing global crude prices and market conditions.
New fuel export duty rates After Fuel export tax hike 2026
| Fuel product | Previous duty | Revised duty |
| Diesel | ₹8.5 per litre | ₹15.5 per litre |
| Aviation Turbine Fuel (ATF) | ₹7.5 per litre | ₹14.5 per litre |
| Petrol | ₹4 per litre | ₹2.5 per litre |
Note: The revised rates became effective on July 16, 2026.
Will petrol and diesel prices change for consumers?
The revised export duties apply to exported petroleum products and do not directly change retail petrol and diesel prices in the domestic market.
Retail fuel prices across major Indian cities remained unchanged on July 16 despite the revision in export duties.
What is windfall tax on fuel exports?
India periodically imposes or revises export duties on petroleum products depending on international crude oil prices and refining margins. India periodically revises export duties on petroleum products based on international crude oil prices and prevailing refining margins. These rates are reviewed at regular intervals.
The latest revision reflects the government’s response to higher crude oil prices and evolving international market dynamics.
Also read: EPFO new rules 2026 explained: What the Rs 1,800 PF contribution rule means
