India Revises Fuel Export Duties on Petrol, Diesel and ATF From June 1; Check New Rates

The Centre has reduced export duties on petrol, diesel and aviation turbine fuel (ATF) with effect from June 1, 2026, offering relief to fuel exporters amid ongoing geopolitical tensions in West Asia. The revised rates will apply to all shipments leaving India during the current fortnightly review period.

New Export Duty Rates on Petrol, Diesel and ATF Effective June 1

The move comes as global energy markets remain sensitive to developments in the region, particularly concerns around crude oil supplies and trade routes. While export taxes have been lowered, the government has made it clear that there will be no change in excise duty on petrol and diesel sold within the country.

Under the latest notification issued by the government, the special additional excise duty (SAED) on fuel exports has been reduced across all three categories.

Petrol, Diesel, ATF Export Duty Will Be Revised; Check New Rates

The export duty on petrol has been cut by 50% to Rs 1.5 per litre from the earlier Rs 3 per litre. Diesel exports will now attract a levy of Rs 13.5 per litre, down from Rs 16.5 per litre. Similarly, the duty on aviation turbine fuel has been reduced sharply to Rs 9.5 per litre from Rs 16 per litre.

• Petrol: Export duty reduced from Rs 3 per litre to Rs 1.5 per litre
• Diesel: Export duty reduced from Rs 16.5 per litre to Rs 13.5 per litre
• ATF (Aviation Turbine Fuel): Export duty reduced from Rs 16 per litre to Rs 9.5 per litre

The revised rates will remain in force until the next scheduled review later in June.

Why Has the Government Reduced Export Duty on Fuel?

India introduced export duties on petrol, diesel and ATF in March 2026 as authorities sought to ensure adequate domestic fuel availability amid rising uncertainty in global energy markets. The decision was largely influenced by the conflict involving Iran and the United States, which raised concerns about potential disruptions in crude oil supplies and international fuel trade.

By imposing export levies, the government aimed to discourage excessive overseas sales by refiners and prioritise domestic supply requirements. The policy was designed as a temporary mechanism that could be adjusted according to changing market conditions.

How Are Export Duty Rates Decided?

The export duty structure is reviewed every fortnight by the government. During each review, officials assess average international prices of crude oil as well as refined products such as petrol, diesel and ATF.

Based on these price trends, fresh duty rates are calculated and notified. The latest reduction indicates that market conditions have allowed some easing of the levies compared to the previous fortnight.

Will Petrol and Diesel Prices Change for Consumers?

For domestic consumers, there is no immediate impact from the latest announcement.

The government has maintained existing excise duties on petrol and diesel sold within India, meaning there is no direct tax-related change in fuel prices at petrol pumps. Any future movement in retail fuel prices will continue to depend on global crude oil prices, refining margins and decisions taken by oil marketing companies.

What the Duty Cut Means for Refiners

The reduction in export duties is expected to improve export economics for Indian refiners by lowering the tax burden on overseas shipments. Companies exporting petrol, diesel and ATF may benefit from better margins during the current review period.

However, the situation remains closely linked to developments in global energy markets, and duty rates could be revised again during the next fortnightly review depending on international crude and fuel price trends.

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