Govt revises export duty on petrol, diesel, ATF from July 1; no change in domestic fuel tax
New Delhi, June 30
The Centre has 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 that were first introduced on 27 March 2026 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 1 July 2026, 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 16 June 2026.
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 July 1, 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 1 July 2026, with new exemptions for Mauritius and Maldives, but domestic fuel taxes remain unchanged.
— ANI
Reader Comments
Good that they are adding Mauritius and Maldives to exemption list. Our neighbourhood diplomacy needs such gestures. But honestly, the common man is still paying through the nose at the pump. Excise duty on petrol and diesel is still sky-high. When will that be reduced? 🛢️💸
As an economist watching this from abroad, I find the fortnightly review mechanism interesting. Keeps things flexible based on global crude prices. But why not pass some of that benefit to domestic consumers? The excise duty on petrol and diesel hasn't moved in months. Seems like a missed opportunity. 📉
Every fortnight they review and adjust export duties, but domestic fuel taxes remain untouched. That is the real issue. ₹7.5 per litre on ATF will also hit airlines - ticket prices will go up again. Middle class ko kaun bachayega? 🥲
Understand the need to ensure domestic supply during West Asia crisis, but these export duties are essentially a tax on Indian oil companies. They will pass on costs somehow. At least the exemption for Nepal, Bhutan, Bangladesh, Sri Lanka, and now Mauritius and Maldives shows India's commitment to regional stability. 🇮🇳🌍
So many people are talking about domestic prices but let's be honest - the government has given us free ration, free vaccines, and now keeping domestic excise unchanged is better than increasing it. Yes, costs are high, but at least they are not hiking it further. Baby steps, people. 🐣
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