Centre Imposes Export Duty On Fuel: Rs 4 Per Litre On Petrol, Rs 8.5 On Diesel, Rs 7.5 On ATF

New Delhi: The Union Government has recalibrated the export duties on petrol, diesel and aviation turbine fuel (ATF) for the fortnight beginning July 1, while choosing to leave the excise duty on petrol and diesel sold within India untouched. The Finance Ministry issued two notifications on Tuesday revising the Special Additional Excise Duty (SAED) on fuel exports as part of routine fortnightly review.

The ministry officials stated that the adjustments are designed to balance overseas shipments with domestic availability of petroleum products. The windfall tax regime was first introduced on March 27 to discourage excessive exports during the West Asia crisis and to secure supplies for the Indian market.

According to the latest order, the export levy on petrol has been raised to Rs 4 per litre from Rs 1.5 per litre earlier. On the other hand, the duty on diesel exports has been lowered to Rs 8.5 per litre from Rs 14 per litre, while the charge on ATF has been cut to Rs 7.5 per litre from Rs 12.5 per litre. In each case, the Road and Infrastructure Cess (RIC) remains at nil, meaning the SAED constitutes the entire export tax. The notification specifically sets the SAED on ATF exports at Rs 7.5 per litre, with the official statement confirming that all three revised rates will come into force on July 1.

Rates Reviewed Fortnightly Based On Global Prices

Notably, the government undertakes a review of the levies every two weeks, taking into account the average international prices of crude oil, petrol, diesel and ATF since the previous revision. The last such exercise was carried out on June 16.

Alongside the rate changes, the Centre has expanded the list of nations exempted from the export duty. At present, exports of petrol, diesel and ATF by public sector oil companies to Nepal, Bhutan, Bangladesh and Sri Lanka do not attract the levy. Now, the exemption has been extended to cover Mauritius and the Maldives as well.

Importantly, the Finance Ministry clarified that there is no alteration to the existing excise duty on petrol and diesel cleared for domestic consumption. As a result, while exporters will see a change in their tax outgo from July 1, motorists and consumers buying fuel at retail pumps across India will not face any direct impact from these notifications.

Retail Sale Curbs Lifted From July 1

The duty revision took place a day after the Centre decided to withdraw restrictions on the sale of petrol and diesel that were imposed earlier this month. In an order issued on Monday, the government announced that curbs introduced amid disruptions to global supply chains due to the US-Iran war would be lifted on July 1.

Earlier in June, the commercial fuel buyers had been barred from purchasing petrol and diesel at retail stations, and daily diesel purchases were capped to prevent local shortages. “The temporary measures were considered necessary and expedient in the public interest to maintain supplies of motor spirit (petrol) and high speed diesel...and secure their equitable distribution and availability at fair prices,” the June 29 order noted.

Following a review of the supply situation, the ministry said that it was “satisfied” that it was no longer necessary in the public interest to continue with the June 12 order. “Therefore, in exercise of powers conferred by clause 3 of the Motor Spirit and High Speed Diesel (Temporary Regulation of Supply through Retail Outlets) Order, 2026, the Central Government hereby withdraws its Order of even number dated 12th June, 2026 with effect from 1st July, 2026,” it said.

The experts attributed the move to improved crude oil and fuel supplies from Gulf producers after tensions in the region eased, enabling energy shipments through the Strait of Hormuz to resume.