India Reduces Export Taxes on Fuels Amid West Asia Crisis
Centre cuts export tax on petrol, diesel and jet fuel from June 1; domestic rates remain unchanged
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The Indian government has announced a reduction in export taxes on petrol, diesel, and aviation turbine fuel (ATF) effective June 1, 2026, while domestic rates remain unchanged. The new duties aim to balance export opportunities with domestic supply needs during the ongoing West Asia crisis.
- 01Export taxes on petrol, diesel, and ATF will be reduced starting June 1, 2026.
- 02New rates include ₹1.5 per litre for petrol, ₹13.5 for diesel, and ₹9.5 for ATF, with no Road and Infrastructure Cess applied.
- 03The export duties were initially imposed on March 27, 2026, to ensure domestic fuel availability amid international disruptions.
- 04The government reviews export duties every fortnight based on global oil price movements.
- 05Domestic excise duties on petrol and diesel remain unchanged to support local consumers.
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In response to the ongoing crisis in West Asia, the Indian Central Government has revised export taxes on petrol, diesel, and aviation turbine fuel (ATF), effective June 1, 2026. The updated rates include ₹1.5 per litre for petrol, ₹13.5 for diesel, and ₹9.5 for ATF, with the Special Additional Excise Duty (SAED) being the only charge applied, while the Road and Infrastructure Cess (RIC) remains at zero. These export duties were first introduced on March 27, 2026, to discourage excessive exports and ensure sufficient domestic supply. The government reviews these taxes every two weeks, adjusting them based on international crude oil prices and market conditions. Notably, domestic excise duties on fuels sold within India will not change, maintaining stability for local consumers. This approach aims to balance the interests of fuel exporters with the necessity of adequate domestic availability during challenging global circumstances.
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The reduction in export taxes may help stabilize domestic fuel prices, benefiting consumers and businesses reliant on fuel.
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