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New Delhi. The Central Government has taken a big decision regarding the export of petroleum products. The government has reduced the export tax on petrol, diesel and aviation turbine fuel (ATF). The new rule has come into effect from 15 August 2026. This change is expected to provide relief to Indian refinery companies selling petroleum products abroad.

Export tax on petrol becomes zero

According to the new order of the government, the tax on export of petrol has been reduced from Rs 3.5 per liter to zero. Whereas the total tax on diesel has been reduced from Rs 25.5 to Rs 24 per liter. Relief has also been given in the case of ATF. Tax on its export has been reduced from Rs 22 to Rs 19.5 per litre. The total tax applicable on diesel includes Special Additional Excise Duty and Road and Infrastructure Cess.

There will be no direct impact on common people

This decision will not have any immediate direct impact on the prices of petrol and diesel sold in the domestic market. The government has clarified that this change in tax is applicable only to exported petroleum products. There has been no change in the excise duty on domestic fuel. Therefore, this decision will not automatically reduce the retail prices of petrol and diesel.

Why did oil companies get relief?

The government reviews the export tax from time to time in view of the changes in the prices of crude oil and refined petroleum products in the international market. After recent changes in global prices, the government has again revised the tax rates.

With this deduction, big Indian refinery companies exporting petroleum products abroad will have to pay less tax. This is expected to reduce their export costs and improve their competitiveness in the international market. Overall, this decision is a relief for oil companies, while it will not have a direct impact on the current prices of petrol and diesel for domestic consumers.