• Source:JND

The Centre has revised export levies on petrol, diesel and aviation turbine fuel (ATF) for the upcoming fortnight starting June 1. The domestic excise duty however, remain the same.

The export duties were introduced earlier this year to ensure adequate domestic availability of petroleum products amid disruptions and uncertainty caused by the West Asia crisis. The latest notification issued by the government says that the revised rates will come into effect from June 1, 2026.

Why Were Export Levies Introduced?

Export levies were introduced in the form of Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC) on petrol, diesel and ATF exports. The taxes were first imposed on March 27, 2026. The Centre asserted that the measure was introduced to lessen excessive exports. It was also aimed at ensuring sufficient domestic supplies of petroleum products at a time when the Middle East conflict was impacting global markets.

Officials stated that the duties are reviewed and revised every fortnight based on prevailing international market conditions. The previous revision came into force on May 16, 2026.

What Does Revised Structure Say?

Under the revised structure, exports of petrol will comew with a duty of Rs 1.5 per litre. The entire amount will be collected as Special Additional Excise Duty, while no Road and Infrastructure Cess will be charged.

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Diesel exports will have a duty of Rs 13.5 per litre. This amount will also be collected entirely as Special Additional Excise Duty, with no Road and Infrastructure Cess component.

For aviation turbine fuel, the government has fixed the export duty at Rs 9.5 per litre. The levy will be charged solely as Special Additional Excise Duty. The revised rates will remain in force for the next fortnight unless further changes are announced during the next review.

Will Prices Of Petrol And Diesel Drop?

The Centre as of now did not announce any revised rates of domestic fuels, which means local prices for retail consumers remain unchanged. The revision applies to export duties. Refiners exporting petrol, diesel, and ATF will pay lower taxes. In simple terms, the latest cut in export duty will improve margins for refiners exporting fuel, not the domestic consumers.

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The government clarified that the latest notification applies only to exports of petroleum products. Therefore, excise duties on petrol and diesel cleared for use within India will continue at the current rates without any modification.

 

 

 

 

 


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