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Revised Export Duty on Fuel Kicks in From June 1; Domestic Excise Rates on Petrol, Diesel Remain Unchanged

The levy cuts are tied to global price swings and West Asia tensions, while domestic fuel taxes remain unchanged, officials said.

  • On Saturday, the Central Government notified revised export levies on petrol, diesel, and aviation turbine fuel effective June 1, aiming to balance energy security with inflation risks amid global volatility.
  • The export levy mechanism was introduced on March 27, 2026, with the Ministry of Finance stating these measures aim at "disincentivising exports in the backdrop of the West Asia crises."
  • Export duties for petrol, diesel, and aviation turbine fuel are now set at ₹1.5, ₹13.5, and ₹9.5 per litre respectively, replacing the rates that came into effect on May 16.
  • The Centre clarified that existing excise duty rates on petrol and diesel for domestic consumption remain unchanged, ensuring no immediate impact on retail fuel prices for consumers.
  • Fortnightly reviews allow New Delhi to adjust export disincentives quickly based on average international prices of crude oil and petroleum products as global markets remain volatile.
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Reuters broke the news in New York, United States on Saturday, May 30, 2026.
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