Changes to Export Duties on Petrol, Diesel, and ATF Effective June 1

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Narendra Jijhontiya

Changes to Export Duties on Petrol, Diesel, and ATF Effective June 1

New Delhi, May 31: The central government has announced revisions to export duties on petrol, diesel, and aviation turbine fuel (ATF) starting June 1.

According to an official notification, the export duty for petrol is set at ₹1.5 per liter, while diesel will incur a charge of ₹13.5 per liter, and ATF will be taxed at ₹9.5 per liter.

However, there will be no changes to the excise duty rates on petrol and diesel sold in the domestic market.

The new rates have been established based on the international average prices of crude oil, petrol, diesel, and ATF during the period following the last review.

These export duties were implemented on March 27, 2026, to ensure adequate availability of petroleum products in the country amid the crisis in West Asia and to regulate exports. The last amendment took effect on May 16, 2026.

On May 16, the government modified the export tax on petroleum products, imposing a special additional excise duty (SAED) of ₹3 per liter on petrol, while reducing the duty on diesel to ₹16.5 per liter.

The finance ministry’s notification stated that the new rate of ₹3 per liter for petrol exports would apply, while the diesel duty was set at ₹16.5 per liter. Additionally, the road and infrastructure cess on petrol and diesel exports was eliminated, with no changes made to domestic fuel tax rates.

Previously, the export duty on diesel had seen multiple adjustments. On March 26, it was set at ₹21.50 per liter, which was later increased to ₹55.5 per liter on April 11. Subsequently, it was reduced to ₹23 per liter on April 30 and is now further decreased to ₹13.5 per liter.

Similarly, the duty on aviation turbine fuel (ATF) has also undergone several changes. Initially, it was ₹29.5 per liter, later raised to ₹42 per liter, then reduced to ₹33 per liter, and is now set at ₹9.5 per liter.

This windfall tax system was implemented to maintain sufficient fuel availability in the country and to control exports amid the volatility in the global oil market due to the West Asia crisis.

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