The Central Government has revised export duties on petrol, diesel, and aviation turbine fuel (ATF) for the fortnight beginning June 1, 2026, citing the need to maintain adequate domestic fuel availability amid ongoing tensions in West Asia. Under the revised rates, petrol exports will attract a duty of Rs 1.5 per litre, while diesel and ATF exports will continue to face higher levies of Rs 13.5 and Rs 9.5 per litre respectively.
Review Mechanism
The government said the rates are reviewed every two weeks and are based on prevailing international prices of crude oil and petroleum products. Officials noted that softer global gasoline prices led to a reduction in the petrol levy, while strong international demand and market volatility kept duties on diesel and aviation fuel elevated.
Domestic Impact
The Centre has clarified that there is no change in excise duties on petrol and diesel meant for domestic consumption, meaning consumers will not be affected by the latest revision. The export duty framework was introduced in March 2026 to discourage excessive fuel exports and strengthen India's energy security during periods of global uncertainty.
This adjustment reflects the government's proactive approach to balancing domestic supply needs with international market dynamics. The fortnightly review allows for flexibility in response to fluctuating crude oil prices and geopolitical developments. The decision comes as global energy markets remain volatile due to ongoing conflicts in West Asia, which have disrupted supply chains and heightened price instability.
Industry experts suggest that while the reduction in petrol export duty may provide some relief to exporters, the high levies on diesel and ATF could continue to limit outbound shipments. The policy aims to prioritize domestic requirements, ensuring that Indian consumers have access to adequate fuel supplies at stable prices. The government remains committed to monitoring the situation and adjusting duties as necessary to safeguard national energy interests.
