The Indian central government announced it will reduce export duties on petrol, diesel, and aviation turbine fuel starting June 1, 2026 [4].
This strategic shift aims to ensure adequate domestic fuel supplies while the region navigates the West Asia crisis. By adjusting these levies, the government seeks to balance international trade opportunities with the necessity of maintaining internal energy security.
Under the revised schedule, the export duty on petrol will be set at 1.5 rupees per litre [1]. The duty for diesel will be 13.5 rupees per litre [2], and aviation turbine fuel, commonly known as ATF, will be set at 9.5 rupees per litre [3].
These changes follow a routine review of levies that the government links to global crude oil and fuel price movements [1]. While the export taxes are being lowered, the government said domestic excise duty on fuel remains unchanged [5].
The timing of these revisions reflects a volatile energy market. Earlier this month, some reports indicated a rise in export duties [5], but the latest government directives confirm a reduction in rates for the June 1 implementation date [4].
Officials said the move is part of a broader effort to manage the impact of global price swings on the Indian economy. By lowering the cost for exporters, the government can better align its energy exports with current market realities without impacting the tax burden on domestic consumers [5].
“Export duty on petrol set at 1.5 rupees per litre”
The decision to lower export duties while keeping domestic taxes steady suggests the Indian government is attempting to stimulate fuel exports to generate revenue without risking domestic shortages. By anchoring these changes to the West Asia crisis, the government is acknowledging that geopolitical instability in oil-producing regions requires more flexible trade policies to prevent internal price shocks.
