Government Updates Export Taxes On Petrol, Diesel And ATF; Domestic Rates Unchanged
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. 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. 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.