Revised export duty on fuel kicks in from June 1; Domestic excise rates on petrol, diesel remain unchanged

The Centre has revised export levies on petrol, diesel and aviation turbine fuel (ATF) for the next fortnight beginning June 1, while retaining existing excise duty rates on fuel sold within the country. The move comes amid continued volatility in global energy markets triggered by the West Asia crisis and concerns over domestic fuel availability.

According to the official notification, the revised levy structure includes a Special Additional Excise Duty (SAED) of Rs 1.5 per litre on petrol exports, Rs 13.5 per litre on diesel exports and Rs 9.5 per litre on ATF exports. No Road and Infrastructure Cess (RIC) has been imposed on petrol and diesel exports in the current review cycle.

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The government said the revised rates were determined after assessing the average international prices of crude oil and petroleum products since the last review period.

The latest review replaces the earlier rates that came into effect on May 16. The previous revision had imposed a Rs 3 per litre levy on petrol exports while reducing diesel export duty to Rs 16.5 per litre. The latest review significantly lowers the petrol export duty, indicating easing global gasoline prices compared to crude benchmarks.

No change for domestic consumers

Even as export duties were recalibrated, the Centre clarified that fuel sold for domestic consumption would remain unaffected. Existing excise duty rates on petrol and diesel within India have been left untouched, ensuring there is no immediate impact on retail fuel prices for consumers.

Officials said the export levy mechanism is aimed at managing domestic fuel supply by discouraging overseas shipments when global prices surge sharply.

West Asia tensions driving policy reviews

The export duty framework was first introduced on March 27, 2026, following heightened geopolitical tensions in West Asia that disrupted global crude and fuel markets. The fortnightly review system allows the government to alter export disincentives quickly in response to fluctuations in international prices and supply concerns.

Officials indicated that the policy is part of a broader effort to balance India’s energy security needs with inflation management at a time when crude oil markets remain unpredictable. The next review of export duties will again be based on average international prices prevailing during the upcoming fortnight.