Centre Cuts Export Tax On Petrol, Diesel, Jet Fuel From June 1; New Rates Announced

New Delhi: Amid ongoing fluctuations in the global oil market and the Middle East crisis, the central government has made an important decision regarding petroleum products. The government has announced 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 after reviewing average international crude 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 entire amount will be collected as Special Additional 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 also be fully covered by the special additional excise duty and will not attract any road cess.

Aviation Fuel: The government has fixed an export duty of Rs 9.5 per litre on the export of jet fuel, which will be collected only as special additional 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 crisis had created huge uncertainty in the global energy market earlier this year.

The government's primary objective behind 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 adequate availability of fuel in the domestic market.

What about review?

According to government officials, this tax is reviewed every two weeks based on international prices of crude oil, petrol, diesel, and jet fuel. The last rate revision was made on May 16. This arrangement is designed to strike a balance between export opportunities for oil refineries and domestic fuel supplies.

Will petrol and diesel become cheaper for general public?

The government has clearly stated that this decision 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 change or reduction in oil prices at petrol pumps within India due to this decision.