Our Bureau
New Delhi
The Central Government has reduced export duties on petrol, diesel and aviation turbine fuel (ATF) for the fortnight beginning June 1, 2026, offering relief to Indian refiners amid ongoing geopolitical tensions in West Asia. The move keeps domestic fuel prices unchanged while making Indian exports more competitive in global markets.
The special additional excise duty (SAED) on petrol exports has been cut by 50 per cent, dropping from Rs 3 per litre to Rs 1.5 per litre. Diesel export duty has been reduced from Rs 16.5 per litre to Rs 13.5 per litre, while ATF exports will now attract Rs 9.5 per litre instead of the earlier Rs 16 per litre. All the new levies are entirely in the form of SAED, with no Road and Infrastructure Cess applicable.
The government notified the revised windfall tax rates, emphasizing the need to maintain adequate domestic supply of petroleum products during the West Asia crisis. Officials clarified that existing excise duty rates on petrol and diesel sold in the domestic market remain completely unchanged, so pump prices for Indian consumers will not be affected.
These export levies are reviewed every fortnight based on average international oil prices from the previous two weeks. India first imposed windfall taxes on fuel exports in July 2022 to capture excess profits when global prices surged. The revised rates will remain in force until the next scheduled review later in June 2026.
The duty reduction comes as global oil markets remain volatile due to Middle East tensions, with Indian refineries facing pressure on export margins. By lowering export taxes, the Centre aims to support the refining sector while ensuring domestic fuel availability stays secure
