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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.