Agencies | New Delhi:
Amid rising fuel costs and continued volatility in global energy markets, the Central Government has revised export duties on petrol, diesel and aviation turbine fuel (ATF) for the next fortnight beginning June 1, while keeping excise duty rates on domestic fuel sales unchanged.
The export levies were introduced earlier this year to ensure adequate domestic availability of petroleum products amid disruptions and uncertainty triggered by the West Asia crisis.
Why Were Export Levies Introduced?
Export duties in the form of Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC) on petrol, diesel and ATF exports were first imposed on March 27, 2026.
According to the government, the measure was intended to discourage excessive exports and safeguard domestic fuel supplies at a time when geopolitical tensions in West Asia were impacting global energy markets.
Officials have stated that the duties are reviewed every fortnight and adjusted based on prevailing international market conditions. The previous revision came into effect on May 16, 2026.
Revised Export Duty Rates from June 1
Under the revised structure, petrol exports will attract a duty of Rs 1.5 per litre, entirely levied as Special Additional Excise Duty, with no Road and Infrastructure Cess component.
Diesel exports will be subject to a duty of Rs 13.5 per litre, also collected wholly as Special Additional Excise Duty.
For aviation turbine fuel, the export duty has been fixed at Rs 9.5 per litre, again charged solely as Special Additional Excise Duty.
The revised rates will remain in force for the next fortnight unless further changes are announced during the next review cycle.
Linked to International Fuel Prices
The government said the duty structure is determined on the basis of average international prices of crude oil, petrol, diesel and ATF recorded since the previous review period.
Global price movements are assessed every two weeks before a decision is taken on whether the duties should be increased, reduced or retained.
The mechanism is designed to strike a balance between allowing refiners to benefit from export opportunities and ensuring sufficient fuel availability within the country.
No Impact on Domestic Consumers
While export duties have been revised, there is no change in the existing excise duty rates on petrol and diesel sold for domestic consumption.
The government clarified that the latest notification applies exclusively to exports of petroleum products. Consequently, excise duties on petrol and diesel supplied within India will continue at current rates without any modification.
The revised levy structure comes as authorities continue to closely monitor developments in West Asia and their impact on global crude oil and fuel markets, while seeking to protect domestic energy security and maintain adequate fuel supplies.
