ATF price slashed by Rs 5 per litre for domestic airlines, fuel rate set at Rs 110
New Delhi, July 1
The centre on Wednesday revised the Aviation Turbine Fuel for Indian domestic airlines, reducing it by Rs 5 per litre, with the effective price being brought down to Rs 110 per litre.
Earlier on Tuesday, the Centre revised export duties on petrol, diesel and Aviation Turbine Fuel for the fortnight starting July 1, while keeping excise duty on petrol and diesel sold in India unchanged.
The Ministry of Finance on Tuesday issued two notifications updating the Special Additional Excise Duty (SAED) on fuel exports. The move is part of the fortnightly review of export levies, introduced on March 27 to ensure domestic availability of petroleum products by discouraging exports amid the West Asia crisis.
The export duty on petrol has been set at Rs 4 per litre and on diesel at Rs 8.5 per litre. In both cases, the Road and Infrastructure Cess (RIC) remains nil, so the SAED makes up the entire export levy. Notification No. 37/2026 fixes the SAED on ATF exports at Rs 7.5 per litre. All three revised rates take effect from July 1, an official statement said.
The government reviews these rates every two weeks based on the average international prices of crude oil, petrol, diesel and ATF since the last review. The previous revision was done on June 16.
Along with the rate changes, the Centre has expanded the list of countries exempted from this export duty. Earlier, exports of petrol, diesel and ATF by public sector oil companies to Nepal, Bhutan, Bangladesh and Sri Lanka were exempt. That exemption now extends to Mauritius and the Maldives as well.
Importantly, there is no change in the existing excise duty on petrol and diesel cleared for domestic consumption. So while exporters will see their tax outgo change from today, consumers buying fuel at pumps in India will not see a direct impact from these notifications.
In short, export duties have been reset at Rs 4/litre for petrol, Rs 8.5/litre for diesel and Rs 7.5/litre for ATF from today, with new exemptions for Mauritius and Maldives, but domestic fuel taxes remain unchanged.
— ANI
Reader Comments
Good move by the government to support our domestic airlines, but I wish they'd also reduce fuel prices for common people. Petrol and diesel at pumps are still burning a hole in our pockets. 🙏
The export duty changes are interesting. Exempting Mauritius and Maldives shows our diplomatic outreach in the Indian Ocean region is growing. But why not reduce domestic taxes too? Excise duty on petrol and diesel unchanged means no benefit for the aam aadmi. Frustrating!
As someone who travels frequently for work, this is welcome news. Rs 5 per litre cut for ATF might seem small but it adds up. I hope SpiceJet, IndiGo and Air India pass this benefit to passengers rather than just pocketing it. Yaar, competition should work in our favour!
I moved to Bangalore from the US last year and the fuel prices here still shock me. In America, Jet A fuel is around $2 per gallon (roughly Rs 40 per litre). India at Rs 110 is way higher even after this cut. Our airlines must be struggling with such costs.
Honestly, I'm tired of these fortnightly reviews. They keep tweaking export duties but never touch domestic excise. The government should learn from this: when global prices fall, reduce taxes for Indians too. Not just for airlines and exporters. 😤
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.