Amid concerns over global energy supplies, the Centre has increased export duties on Aviation Turbine Fuel (ATF) and diesel for the upcoming fortnight beginning Tuesday (June 16). However, the export duty on petrol has been left unchanged. The move is aimed at ensuring adequate domestic fuel availability and reducing incentives for exports at a time when geopolitical developments continue to impact international energy markets.
According to a government notification issued on Monday, the export duty on aviation turbine fuel has been raised significantly from Rs 9.5 per litre to Rs 12.5 per litre. Diesel exports will also attract a higher levy, with the duty increased from Rs 13.5 per litre to Rs 14 per litre. In contrast, the export duty on petrol remains unchanged at Rs 1.5 per litre. The revised rates will come into effect from June 16 and remain applicable for the next fortnight unless modified during the next review.
Why has the govt increased the duty?
The export duties are imposed through the Special Additional Excise Duty (SAED) framework. These levies were first introduced on March 27, 2026, as part of the government’s strategy to discourage excessive exports and safeguard domestic fuel supplies amid disruptions caused by geopolitical tensions in West Asia.
Under the latest revision, diesel exports will continue to attract an SAED of Rs 14 per litre, while ATF exports will now be subject to an SAED of Rs 12.5 per litre. Petrol exports will continue to face an SAED of Rs 1.5 per litre. Notably, no Road and Infrastructure Cess (RIC) has been imposed on any of these petroleum products under the revised structure.
Govt reviews rates every fortnight
The Centre reviews export duties every two weeks based on movements in international crude oil prices and average global prices of petrol, diesel and aviation fuel. During the previous review that came into effect on June 1, export duties had been fixed at Rs 13.5 per litre for diesel, Rs 9.5 per litre for ATF and Rs 1.5 per litre for petrol. The latest revision reflects the government’s effort to respond quickly to evolving global energy market conditions.
Rising global fuel prices behind the move
Industry observers believe the sharp increase in ATF export duty is linked to sustained volatility in global fuel markets. Concerns over possible supply disruptions from the Middle East have pushed energy prices higher in recent weeks, prompting governments around the world to closely monitor fuel inventories and supply chains. By increasing export duties, India aims to prioritise domestic availability of key petroleum products while maintaining stability in the local market.
Will petrol and diesel prices increase for consumers?
The latest export duty revision does not directly impact retail fuel prices in India. The levy applies only to exports of petroleum products and is separate from taxes imposed on domestic fuel sales. As a result, petrol, diesel and aviation fuel prices paid by consumers within the country are not directly linked to these export duty changes. However, fuel prices continue to be influenced by broader global crude oil trends, refining margins and market conditions.
What is Special Additional Excise Duty?
Special Additional Excise Duty is a levy imposed by the government on certain petroleum products and domestically produced crude oil. The rates are periodically revised based on international crude prices and refining economics. The mechanism allows the government to balance export incentives with domestic energy security requirements.
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