Finance Minister Nirmala Sitharaman said that the levy on ATF export had been raised to ensure that the fuel is prioritized for use in the domestic sector. “ATF is very important. It is necessary for India’s aircraft and our companies to get ATF. For that reason, there are many refineries in India that buy goods from abroad, refine them here and export them abroad and give them to us. But we have now increased the rate on that export, increased the excise duty, so that instead of exporting, they will sell it in India itself, which will ensure plenty of availability in India and people won’t feel a shortage,” she said.
Explaining the change, Manoj Mishra, Partner at Grant Thornton Bharat said that to ensure adequate fuel availability for domestic consumers and shield them from the impact of ongoing global disruptions, the government has levied an export duty of ₹29.5 per litre on aviation turbine fuel (ATF), alongside a reduction in excise duty on petrol and diesel for domestic consumption. “While the notification prescribes a special additional excise duty of ₹50 per litre on ATF, specified exemptions bring down the effective levy to ₹29.5 per litre, reflecting a calibrated approach to balance domestic supply priorities with external market dynamics,” he said.
These changes have come at a time when crude prices surged to nearly $119 per barrel after US and Israeli strikes on Iran before easing to around $100 levels. Also, product prices are also on rise. With Indian refineries have high capacity and exporting petroleum products, government has reworked the levy.
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Published on March 27, 2026