India Adjusts Export Tax on Fuels Amid West Asia Crisis
West Asia Crisis Impact: Centre Revises Export Tax On Petrol, Diesel, Jet Fuel From June 1
News 18
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The Indian government has revised export duties on petrol, diesel, and aviation turbine fuel effective June 1, 2026, in response to the ongoing crisis in West Asia. The adjustments aim to ensure sufficient domestic fuel supply while maintaining current domestic excise rates.
- 01Export duties on petrol, diesel, and aviation turbine fuel were first imposed on March 27, 2026, to manage domestic supply amid international disruptions.
- 02From June 1, 2026, petrol exports will incur a duty of ₹1.5 per litre, diesel ₹13.5 per litre, and aviation turbine fuel ₹9.5 per litre.
- 03The revised export duties are based on average international prices and will be reviewed every fortnight.
- 04Domestic excise duty rates for petrol and diesel remain unchanged, ensuring no impact on local consumers.
- 05The government aims to balance export opportunities with the need for adequate domestic fuel supplies.
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The Central government of India has announced a revision of export duties on petrol, diesel, and aviation turbine fuel (ATF) starting June 1, 2026. This decision comes as a response to the ongoing crisis in West Asia, which has disrupted global energy markets. The export duties, initially imposed on March 27, 2026, were designed to discourage excessive exports and ensure adequate domestic availability of petroleum products. Under the new structure, petrol exports will be taxed at ₹1.5 per litre, diesel at ₹13.5 per litre, and ATF at ₹9.5 per litre, all collected as Special Additional Excise Duty. The government clarified that these changes apply solely to exports, with no alterations to domestic excise rates for petrol and diesel. The export duties will be reviewed every fortnight based on international price trends, allowing the government to adjust them as necessary to maintain a balance between export opportunities and domestic supply needs.
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The revised export duties aim to ensure adequate domestic fuel supply amidst international disruptions, potentially stabilizing local fuel prices.
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