Govt revises export duty on petrol, diesel, ATF from July 1; no change in domestic fuel tax
Jun 30, 2026
New Delhi [India], June 30 : The Centre has revised export duties on petrol, diesel and aviation turbine fuel (ATF) for the fortnight starting July 1, while keeping excise duty on petrol and diesel sold in India unchanged.
The Ministry of Finance on Tuesday issued two notifications updating the Special Additional Excise Duty (SAED) on fuel exports. The move is part of the fortnightly review of export levies that were first introduced on 27 March 2026 to ensure domestic availability of petroleum products by discouraging exports amid the West Asia crisis.
The export duty on petrol has been set at Rs 4 per litre and on diesel at Rs 8.5 per litre. In both cases, the Road and Infrastructure Cess (RIC) remains nil, so the SAED makes up the entire export levy. Notification No. 37/2026 fixes the SAED on ATF exports at Rs 7.5 per litre. All three revised rates take effect from 1 July 2026, an official statement said.
The government reviews these rates every two weeks based on the average international prices of crude oil, petrol, diesel and ATF since the last review. The previous revision was done on 16 June 2026.
Along with the rate changes, the Centre has expanded the list of countries exempted from this export duty. Earlier, exports of petrol, diesel and ATF by public sector oil companies to Nepal, Bhutan, Bangladesh and Sri Lanka were exempt. That exemption now extends to Mauritius and the Maldives as well.
Importantly, there is no change in the existing excise duty on petrol and diesel cleared for domestic consumption. So while exporters will see their tax outgo change from July 1, consumers buying fuel at pumps in India will not see a direct impact from these notifications.
In short, export duties have been reset at Rs 4/litre for petrol, Rs 8.5/litre for diesel and Rs 7.5/litre for ATF from 1 July 2026, with new exemptions for Mauritius and Maldives, but domestic fuel taxes remain unchanged.