India Reduces Export Duty on Fuel Amid Easing Global Prices
Why Centre Has Cut Export Duty on Petrol, Diesel and ATF from June 1
News 18
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The Indian government has cut export duties on petrol, diesel, and aviation turbine fuel (ATF) effective June 1, following a decline in international fuel prices. Petrol export duty is now ₹1.5 per litre, diesel ₹13.5, and ATF ₹9.5, while domestic fuel taxes remain unchanged.
- 01Export duties on petrol, diesel, and ATF have been reduced to ₹1.5, ₹13.5, and ₹9.5 per litre respectively, effective June 1.
- 02The reduction is a response to lower international fuel prices and aims to balance domestic supply with export opportunities.
- 03The government had previously imposed higher export duties in March 2026 due to geopolitical tensions affecting global crude oil prices.
- 04No changes were made to the excise duty rates on petrol and diesel for domestic consumption.
- 05The export duty rates will be reviewed again in two weeks, depending on market conditions.
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The Indian government has announced a reduction in export duties on petrol, diesel, and aviation turbine fuel (ATF), effective June 1, due to a decline in international fuel prices. The new export duties are set at ₹1.5 per litre for petrol, ₹13.5 for diesel, and ₹9.5 for ATF. This change comes after a fortnightly review of the duties, which are linked to global energy market conditions. Previously, export duties were higher, reflecting concerns over domestic fuel availability amid geopolitical tensions in West Asia. Despite the reduction in export duties, the government has kept the excise duty rates for petrol and diesel sold domestically unchanged. This decision aims to provide relief to Indian refiners by enhancing their export margins while ensuring adequate fuel supply within the country. The government will continue to monitor international prices and domestic availability, with the next review scheduled in two weeks.
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The reduction in export duties is expected to improve the export economics for Indian refiners, potentially leading to better profitability.
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