New Delhi: Amid ongoing fluctuations in the global oil market and the Middle East crisis, the inside government has made an important visualization regarding petroleum products. The government has spoken a reduction in the tax on the export of petrol, diesel, and aviation turbine fuel (ATF). According to the latest notification issued by the government, these revised rates will come into effect from June 1, 2026.
What did the governemnt say?
The government on Saturday said that the country will cut its export duty on petrol, diesel and aviation turbine fuel (ATF) for the fortnight starting June 1.
What will be the new rates from June 1?
The government revises export duties every 15 days without reviewing stereotype international transplanted oil and fuel prices. Following the new revision, the export duty structure will be as follows:
Petrol:The duty on exports of petrol has been set at Rs 1.5 per litre. This unshortened value will be placid as Special Spare Excise Duty (SAED), while the Road and Infrastructure Cess will not be levied.
Diesel: The duty on exports of diesel has been set at Rs 13.5 per liter. It will moreover be fully covered by the special spare excise duty and will not vamp any road cess.
Aviation Fuel: The government has stock-still an export duty of Rs 9.5 per litre on the export of jet fuel, which will be placid only as special spare excise duty.
Why was this export tax imposed?
The government had imposed this tax for the first time on March 27, 2026, on exports of petrol, diesel and ATF when the Middle East slipperiness had created huge uncertainty in the global energy market older this year.
The government's primary objective overdue imposing this tax was to prevent domestic oil companies from exporting excessive fuel in pursuit of profit. The government wanted to ensure no shortage of petroleum products within the country and unobjectionable availability of fuel in the domestic market.
What well-nigh review?
According to government officials, this tax is reviewed every two weeks based on international prices of transplanted oil, petrol, diesel, and jet fuel. The last rate revision was made on May 16. This wattle is designed to strike a wastefulness between export opportunities for oil refineries and domestic fuel supplies.
Will petrol and diesel wilt cheaper for unstipulated public?
The government has unmistakably stated that this visualization will not directly impact domestic consumers. The government has not made any changes to the excise duty rates on petrol and diesel sold for domestic consumption.
This new notification applies only to petroleum products exported from India to other countries. Therefore, there will be no transpiration or reduction in oil prices at petrol pumps within India due to this decision.
