Fuel export levies revised from June 1: Petrol at ₹1.5, diesel ₹13.5 per litre
Synopsis
India has cut fuel export duties for the third time in two months, with diesel rates dropping from a peak of ₹55.5 per litre in April to ₹13.5 per litre from 1 June. The steady rollback signals easing domestic supply pressure — but the fortnightly review mechanism means the Centre retains the lever to reverse course if the West Asia crisis deepens.
Key Takeaways
Export levy on petrol set at ₹1.5 per litre , diesel at ₹13.5 per litre , and ATF at ₹9.5 per litre from 1 June 2026 .
Domestic excise duty on petrol and diesel remains unchanged ; retail pump prices are unaffected.
Export levies were first introduced on 27 March 2026 amid the West Asia crisis to protect domestic fuel availability.
Diesel export duty peaked at ₹55.5 per litre on 11 April 2026 before successive reductions.
The next fortnightly review is expected around 16 June 2026 .
The Centre has revised export levies on petrol, diesel, and aviation turbine fuel (ATF) for the fortnight beginning 1 June 2026, according to an official notification issued by the Ministry of Finance. Domestic excise duty rates on petrol and diesel remain unchanged.
Revised Export Duty Rates
Under the new rates, the export levy on petrol has been set at ₹1.5 per litre, diesel at ₹13.5 per litre, and ATF at ₹9.5 per litre. The notification states that revised rates have been prescribed based on average international prices of crude oil, petrol, diesel, and ATF prevailing since the last review.
Why These Levies Were Introduced
The export levies were first introduced on 27 March 2026 as part of a windfall tax framework designed to ensure domestic availability of petroleum products. The move came amid volatile global oil markets triggered by the West Asia crisis, with the Centre seeking to discourage exports and keep domestic supplies adequate.
How Rates Have Changed Since March 2026
The duty structure has been revised multiple times since its introduction. Diesel export duty was first set at ₹21.50 per litre on 26 March, raised sharply to ₹55.5 per litre on 11 April, then cut to ₹23 per litre on 30 April, and further reduced to ₹16.5 per litre on 16 May 2026. The latest revision brings it down further to ₹13.5 per litre.
ATF followed a comparable trajectory — starting at ₹29.5 per litre, rising to ₹42 per litre, then falling to ₹33 per litre and subsequently to ₹16 per litre before the current ₹9.5 per litre rate. The trend across both fuels indicates easing pressure on domestic supply as global crude markets partially stabilise.
What Remains Unchanged
The Centre has kept excise duty on petrol and diesel sold domestically unchanged, meaning retail pump prices are unaffected by this fortnight's revision. The road and infrastructure cess on petrol and diesel exports had already been reduced to zero in the 16 May revision.
What to Watch
The fortnightly review mechanism means the next revision is expected around 16 June 2026. Further reductions in export levies would signal continued easing of supply concerns, while any reversal would suggest renewed pressure from global crude price movements or regional geopolitical developments.
Frequently Asked Questions
What are the revised fuel export duty rates from 1 June 2026?
From 1 June 2026, the export levy on petrol is ₹1.5 per litre, diesel is ₹13.5 per litre, and aviation turbine fuel (ATF) is ₹9.5 per litre, as per the Ministry of Finance notification.
Why did India introduce fuel export levies in the first place?
The export levies were introduced on 27 March 2026 to ensure adequate domestic availability of petroleum products amid volatile global oil markets triggered by the West Asia crisis. The framework was designed to discourage exports and protect domestic supply.
Will domestic petrol and diesel prices change due to this revision?
No. The Centre has kept domestic excise duty rates on petrol and diesel unchanged. This revision affects only export levies, so retail pump prices are not impacted.
How often are fuel export duties revised?
The government reviews and revises export levies on a fortnightly basis, calibrating rates based on average international prices of crude oil, petrol, diesel, and ATF since the last review. The next revision is expected around 16 June 2026.
How have diesel export duties changed since March 2026?
Diesel export duty was first set at ₹21.50 per litre on 26 March 2026, raised to ₹55.5 per litre on 11 April, cut to ₹23 per litre on 30 April, reduced to ₹16.5 per litre on 16 May, and now further lowered to ₹13.5 per litre from 1 June 2026.
