Govt cuts export duties on petrol, diesel, ATF from June 1; keeps domestic taxes unchanged, check revised rates
The Centre has revised export duties on petrol, diesel and aviation turbine fuel (ATF) for the next fortnight beginning June 1
Govt cuts export duties on petrol, diesel, ATF from June 1; keeps domestic taxes unchanged, check revised rates(Photo Credit: IANS)
New Delhi: The Centre has revised export duties on petrol, diesel and aviation turbine fuel (ATF) for the next fortnight beginning June 1, the Finance Ministry said on Saturday. The rate of duty will be Rs 1.5 per litre (SAED- Rs 1.5; RIC- Nil) on exports of petrol, Rs. 13.5 per litre (SAED - Rs. 13.5; RIC - Nil) on exports of diesel and Rs. 9.5 per litre (SAED only) on exports of ATF. Meanwhile, there is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption.
The special additional excise duty (SAED) on petrol at Rs 3/litre was imposed on May 16 and the fortnightly review slashed it to Rs 1.5/litre from June 1. The duty on export of diesel has been reduced to Rs 13.5 per litre, from Rs 16.5 per litre, and aviation turbine fuel to Rs 9.5 per litre, from Rs 16 per litre from June 1.
The government had on March 26 imposed an export duty of Rs 21.50 a litre on diesel, and Rs 29.5 a litre on ATF. In the review on April 11, the duties were hiked to Rs 55.5/litre and Rs 42/litre. In the April 30 review, they were cut to Rs 23/litre and Rs 33/litre, and further slashed to Rs 16.5/litre and Rs 16/litre on May 16.
What are the revised export duty rates on petrol, diesel and aviation turbine fuel?
In a press release, the Ministry of Finance stated, "Export levies [Special Additional Excise Duty (SAED)/Road and Infrastructure Cess (RIC)] on the exports of petrol, diesel and aviation turbine fuel (ATF) were introduced with effect from 27th March, 2026 so as to ensure domestic availability of petroleum products by disincentivising exports in the backdrop of the West Asia crises."
"The rates for the next fortnight beginning 1st June, 2026, have been notified by the Central Government today. Consequently, the rate of duty will be Rs 1.5 per litre (SAED- Rs 1.5; RIC- Nil) on exports of petrol, Rs. 13.5 per litre (SAED - Rs. 13.5; RIC - Nil) on exports of diesel and Rs. 9.5 per litre (SAED only) on exports of ATF," the press note added.
The rates are being revised on a fortnightly basis, and the last such revision was undertaken with effect from 16th May, 2026. The rates are prescribed based on the average international prices of crude oil, petrol, diesel and ATF prevailing during the period since the last review. The notification will come into force with effect from June 1, 2026.
"In exercise of the powers conferred by Section 5A of the Central Excise Act, 1944 (1 of 1944) read with Section 147 of Finance Act, 2002 (20 of 2002), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 06/2026-Central Excise, dated the 26th March, 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 205(E), dated the 26th March, 2026, namely:- In the said notification, in the Table,- (i) against serial number 1, in column (4), for the entry, the entry "Rs 1.5 per litre" shall be substituted; (ii) against serial number 2, in column (4), for the entry, the entry "Rs 13.5 per litre" shall be substituted," reads the Gazetted notice.
What is SAED?
The term 'Special Additional Excise Duty' (SAED) is a flexible tax imposed by the government on select products, mainly domestic crude oil and exported petroleum fuels such as petrol, diesel, and ATF. The move is aimed at providing greater clarity on fuel standards amid the rising adoption of alternative and blended aviation fuels.
The recent development comes against the backdrop of a sharp rise in global crude oil prices following the outbreak of the US-Iran conflict, which has heightened concerns over supply disruptions and shipping risks in the strategically important Strait of Hormuz.
What is the cause of increasing Oil Prices?
It is to be noted that the International oil prices spiked after the US and Israel attacked Iran on February 28. Several Iranian top leaders were killed in airstrikes, including Iran's Supreme Leader, Ayatollah Khamenei. Tehran's sweeping retaliation effectively shut the Strait of Hormuz, one of the world's most critical energy arteries, linking the Persian Gulf to global markets and handling roughly a fifth of global oil trade along with significant volumes of liquefied natural gas.
After the Iran war, oil prices spiked from around USD 70 per barrel to USD 119 before seeing some correction. Renewed tensions have pushed Brent the world's most known crude oil benchmark to USD 103-106 per barrel.
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