Petrol Diesel Export Duty: Government changed export duty, reduced tax on petrol, increased on diesel and ATF, know the new rates.

Business Desk – Petrol Diesel Export Duty: The Central Government has changed the export duty on petrol, diesel and aviation turbine fuel (ATF) from July 16, 2026. The government has reduced the export duty on petrol, while increased the tax on diesel and ATF. The new rates have come into effect from Thursday (July 16). The government reviews these rates every 15 days considering the international market and crude oil prices.

Tax reduced on petrol, increased on diesel and ATF

According to the government notification, the export duty on petrol has been reduced from Rs 4 per liter to Rs 2.5 per liter. Whereas export duty on diesel has been increased from Rs 8.5 to Rs 15.5 per liter. Apart from this, duty on Aviation Turbine Fuel (ATF) has also been increased from Rs 7.5 to Rs 14.5 per liter.

Continuous rise in crude oil

The government has taken this decision at a time when crude oil prices are continuously rising in the international market. At around 6:35 am on Thursday (July 16), WTI crude was trading at $ 80.130 per barrel and Brent crude at $ 85.385 per barrel.

Why are crude oil prices increasing?

The biggest reason for the rise in crude oil prices in the global market is believed to be the increasing geopolitical tension between America and Iran. After the attacks on oil tankers by Iran, America has also started action against Iran. The increasing tension and blockade situation between the two countries is affecting the global oil supply. Apart from this, Iran has already threatened to close the Strait of Hormuz, while America is continuously warning of major attacks on Iran. These developments have increased uncertainty in the global energy market.

Why is the Strait of Hormuz important?

The Strait of Hormuz is considered the world’s most important oil transportation route. About 20% of the world’s total oil supply passes through this route. In such a situation, any kind of tension or supply disruption here can have an impact on the fuel market of the entire world. The increasing tension in the Hormuz region amid the decline in exports from Russia may deepen the supply crisis.

The government has already taken steps

On June 11, the government had banned commercial, industrial and institutional consumers from purchasing fuel from retail petrol pumps. These consumers were allowed to buy fuel only through bulk supply, so that the availability of petrol and diesel for the common people is not affected.

However, the government lifted the ban on July 1 after signs of easing tensions in the Middle East. But now, in view of the increasing tension between America and Iran, there is a possibility of increasing pressure on global fuel supply, which may impact many countries including India.