Government Lowers Export Duties on Diesel and Aviation Fuel

In a recent announcement, the government has lowered export duties on diesel and aviation turbine fuel (ATF), effective from May 1. The Special Additional Excise Duty on diesel has been significantly reduced, while the duty on ATF has also seen a decrease. This move follows an increase in duties last month and aims to align with market conditions. Additionally, new regulations now allow ATF to be blended with synthetic fuels, reflecting the evolving standards in the aviation industry. This article delves into the implications of these changes and what they mean for the fuel market.

By Narendra Chaudhary May 1, 2026, 07:17 IST

Export Duty Reduction Announced

On Thursday, the government announced a decrease in export duties for diesel and aviation turbine fuel (ATF), effective from May 1. The Special Additional Excise Duty (SAED) on diesel has been cut from Rs 55.5 per litre to Rs 23 per litre, while the duty on ATF has been reduced from Rs 42 per litre to Rs 33 per litre. The Finance Ministry confirmed that the export duty on petrol remains unchanged at zero.

Understanding SAED

What is SAED? The Special Additional Excise Duty (SAED) is a variable tax levied by the government on specific products, primarily targeting domestic crude oil and exported petroleum fuels like petrol, diesel, and ATF. The Finance Ministry also noted that there will be no alterations to the current excise duty rates for petrol and diesel intended for domestic use.

Changes from Previous Month

In April, the government had raised export duties on petroleum products, increasing the charge on high-speed diesel to Rs 55.5 per litre and on ATF to Rs 42 per litre. Additionally, the Petroleum and Natural Gas Ministry issued a notification on April 22 to update fuel definitions and regulatory measures in line with industry advancements.

New Blending Rules for ATF

Aviation Turbine Fuel (ATF) is now permitted to be blended with synthetic fuels according to new regulations. This initiative aims to clarify fuel standards as the use of alternative and blended aviation fuels rises. A gazette notification from the Ministry of Petroleum and Natural Gas (MoPNG) outlines the changes to the Aviation Turbine Fuel (Regulation of Marketing) Order, 2001. The new G.S.R. 301(E) notification expands the definition of aviation turbine fuel to include a complex mixture of hydrocarbons that meet IS 1571 specifications or its blend with synthesized hydrocarbons as defined in IS 17081.