Government Sets New Fuel Export Levies Effective June 1, Domestic Prices Steady
Starting June 1, 2026, the government has adjusted export duties for petroleum products. The new rates are set at ₹1.5 per litre for petrol, ₹13.5 per litre for diesel, and ₹9.5 per litre for Aviation Turbine Fuel (ATF), leaving domestic prices untouched. Government revises fuel export levies for fortnight beginning June 1, domestic rates unchanged The duty has been set at ₹1.5 per litre on petrol exports, ₹13.5 per litre on diesel exports and ₹9.5.
Export duties on petroleum products function as windfall taxes, capturing surplus profits generated by refineries when global crude prices spike. The Ministry of Finance conducts these revisions every fortnight, adjusting rates in line with international market fluctuations and domestic refining margins.
By maintaining a higher duty structure for diesel and ATF, the government discourages refineries from prioritizing exports over local needs during periods of high international demand. This mechanism helps shield the domestic market from price volatility while ensuring that private refiners contribute a portion of their extraordinary gains to state revenue.
- Petrol: ₹1.5 per litre
- Diesel: ₹13.5 per litre
- ATF: ₹9.5 per litre
- Revision Cycle: Fortnightly
Glossary
ATF (Aviation Turbine Fuel): Specialized fuel used in aircraft engines.
Windfall Tax: A tax levied on industries that experience unexpected, excessive profits due to external economic factors.
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