India cuts fuel export duties from June 1, domestic petrol and diesel taxes unchanged

The government has reduced export duties on petrol, diesel and aviation turbine fuel (ATF) for the fortnight beginning June 1, as part of its periodic review of levies on petroleum product exports.

According to a government notification issued on May 30, the export duty on petrol has been lowered to ₹1.5 per litre, while the duty on diesel has been cut to ₹13.5 per litre. Export duty on ATF has also been reduced to ₹9.5 per litre.

The revised rates will take effect from June 1 and remain in force for the next two weeks. Export duties are reviewed every fortnight based on prevailing international prices of crude oil and refined petroleum products.

The levies, comprising the Special Additional Excise Duty (SAED) and the Road and Infrastructure Cess (RIC), were introduced on March 27, 2026, amid rising geopolitical tensions in West Asia. The measure was aimed at ensuring adequate domestic fuel availability by discouraging excessive exports during a period of uncertainty in global energy markets.

Revised duty structure

Under the new structure, petrol exports will attract only an SAED of ₹1.5 per litre. Diesel exports will be subject to an SAED of ₹13.5 per litre, while ATF exports will continue to attract only the SAED component at ₹9.5 per litre.

The latest revision marks a further reduction from the rates announced on May 16. At that time, the government had increased the export duty on petrol to ₹3 per litre, while lowering duties on diesel and ATF to ₹16.5 per litre and ₹16 per litre, respectively.

Officials said the fortnightly adjustments are based on average international prices of crude oil, petrol, diesel and ATF recorded since the previous review. The mechanism allows the government to respond swiftly to changes in global energy markets while safeguarding domestic supply.

The government has also clarified that there is no change in excise duties on petrol and diesel sold in the domestic market. As a result, the latest revision in export duties is not expected to have any immediate impact on retail fuel prices for consumers.

The next review of export duties is expected in mid-June.