The Government Reduces Export Duty on Petrol has once again changed the export duty on petrol, diesel, and Aviation Turbine Fuel (ATF). According to a new notification from the Finance Ministry, the revised rates will come into effect from June 1, 2026. The decision comes at a time when global crude oil prices continue to fluctuate and the government is regularly reviewing the Special Additional Excise Duty (SAED) on fuel exports.
This move could directly affect oil refining companies, fuel exporters, and the overall energy sector. However, there has been no change in the taxes applied to petrol and diesel sold in the domestic market.
What Are the New Export Duty Rates from June 1, 2026?
The Government Reduces Export Duty on Petrol has decided to reduce export duties on petrol, diesel, and ATF. The new rates are:
- Petrol: โน1.5 per litre
- Diesel: โน13.5 per litre
- ATF (Aviation Turbine Fuel): โน9.5 per litre
Earlier, the export duty was โน3 per litre on petrol, โน16.5 per litre on diesel, and โน16 per litre on ATF. The revised rates will be effective from June 1.
Why Is the Government Reduces Export Duty on Petrol Changing Export Duties Frequently?
Over the past few months, the Indian government has been reviewing these rates every two weeks based on international crude oil and petroleum product prices. When global oil prices rise, the government adjusts export duties to control excess profits and ensure enough fuel is available within the country.
In mid-May 2026, a special export duty of โน3 per litre was imposed on petrol for the first time, while duties on diesel and ATF were reduced. After the latest review, duties on all three products have now been lowered.
What Will Be the Impact on Oil Companies?
Lower export duties may provide some relief to Indian refining companies. Reduced duties mean lower export costs, which can improve profit margins for companies selling fuel overseas.
Experts believe that export-focused refiners such as Reliance Industries and Nayara Energy could benefit from this change because international markets are important for their business. However, the final impact will still depend on global oil prices and fuel demand.
Will Petrol and Diesel Become Cheaper in India?
At present, there is unlikely to be any direct benefit for consumers. The Government Reduces Export Duty on Petrol has clarified that there is no change in the existing excise duties and taxes on petrol and diesel sold for domestic use. Therefore, only export duties are being revised from June 1, while domestic fuel taxes remain unchanged.
However, if international crude oil prices fall and oil companies face lower costs, future decisions regarding fuel prices may be considered.
Impact on ATF and the Aviation Industry
ATF, or Aviation Turbine Fuel, is one of the biggest expenses for airlines. Lower export duties on ATF may make exports more attractive for Indian refiners.
However, fuel prices for domestic airlines mainly depend on local market conditions and global crude oil prices. As a result, this change is unlikely to have an immediate impact on airline ticket prices.
The Role of Global Oil Markets
In 2026, geopolitical tensions in West Asia and fluctuations in crude oil prices have led the government to continuously review fuel export policies. The government’s goal is to ensure sufficient domestic fuel supply while also avoiding excessive pressure on exporters.
Because of these factors, export duty rates have been revised several times during March, April, and May, with the latest changes taking effect from June 1.
What Happens Next?
Under the current system, the government reviews export duties every two weeks. If there are major changes in international oil and fuel prices, the rates may be revised again in the coming weeks.
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Investors, oil refining companies, and the aviation industry will continue to closely watch global oil market developments.
FAQs (Government Reduces Export Duty on Petrol)
1. What will be the export duty on petrol from June 1, 2026?
The export duty on petrol will be โน1.5 per litre.
2. What is the new export duty on diesel?
The export duty on diesel has been reduced to โน13.5 per litre.
3. How much export duty will apply to ATF?
ATF exports will attract a duty of โน9.5 per litre.
4. Will petrol and diesel prices fall in India?
Not immediately. There has been no change in domestic fuel taxes.
5. How often does the government review export duties?
The government usually reviews these rates every two weeks.
6. Who is likely to benefit the most from this decision?
Indian fuel-exporting and refining companies may benefit from lower export duties and improved margins.
