The government has reduced export duties on petrol, diesel and aviation turbine fuel (ATF) from June 1.
The duty on petrol exports has been halved to ₹1.5 per litre, while levies on diesel and ATF have also been lowered.
There is no change in excise duty on petrol and diesel sold in the domestic market.
The Centre has reduced the windfall tax on exports of petrol, diesel and aviation turbine fuel (ATF) for the fortnight starting June 1, according to a Finance Ministry notification.
The duty on petrol exports has been cut to ₹1.5 per litre from ₹3 per litre. Export duty on diesel has been reduced to ₹13.5 per litre from ₹16.5 per litre, while the levy on ATF has been lowered to ₹9.5 per litre from ₹16 per litre.
1 May 2026
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The government reviews these rates every two weeks based on average international prices of crude oil and petroleum products. There is no change in the existing excise duty rates on petrol and diesel sold for domestic consumption.
Why Govt Reduced Export Duties
According to the Finance Ministry, the export levies were introduced on March 27, 2026, to ensure adequate domestic fuel availability and discourage exports amid the ongoing West Asia crisis.
The taxes were imposed after crude oil prices surged following the conflict involving the US, Israel and Iran. The move was aimed at preventing exporters from benefiting excessively from higher international fuel prices while safeguarding domestic supplies.
The latest revision comes after a series of duty adjustments in recent months. The government had initially imposed export duties of ₹21.5 per litre on diesel and ₹29.5 per litre on ATF, before raising and subsequently reducing them in successive reviews.
Impact on Fuel Markets
The reduction in export duties is expected to provide some relief to fuel exporters as global energy markets remain volatile.
Reuters reported that the revised rates were announced for the next fortnight beginning June 1. The Finance Ministry said the rates are linked to prevailing international prices and will continue to be reviewed periodically.
The announcement comes days after fuel prices were increased in several cities amid rising crude oil prices and continued geopolitical tensions in West Asia. However, the government has maintained that there is no change in duties applicable to petrol and diesel meant for domestic consumption.
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