India Cuts Export Duties on Petrol, Diesel and ATF from 1 June 2026

The Central Government has reduced the special export levies on petrol, diesel and aviation turbine fuel (ATF) for the fortnight beginning 1 June 2026. The Ministry of Finance notified the new rates, setting the export duty on petrol at Rs 1.5 per litre, on diesel at Rs 13.5 per litre and on ATF at Rs 9.5 per litre. These charges apply only to fuel that is exported out of the country and not to fuel sold for use within India.

These export levies are made up of the Special Additional Excise Duty (SAED) and the Road and Infrastructure Cess (RIC). They were first imposed from 27 March 2026 to make exporting fuel less attractive, so that more refined petroleum products would stay available inside the country during a period of supply worry linked to the crisis in West Asia. The government reviews and revises the rates every fortnight, based on the average international prices of crude oil, petrol, diesel and ATF since the previous review.

The latest reduction comes at a time of sharp pressure on domestic fuel prices. Retail petrol and diesel rates have been raised several times in recent weeks as global crude markets stayed volatile. The government clarified that there is no change in the excise duty charged on petrol and diesel that is cleared for use within India, so this notification affects exporters rather than ordinary consumers directly.

Exam angle: This topic links the concepts of windfall taxes on fuel exports, the difference between excise duty for domestic sale and export levies, and the institutions involved. Aspirants should note that SAED and RIC are central duties, that the rates are revised fortnightly using international price benchmarks, and that such levies are used as a tool to balance export earnings against domestic availability and inflation.