By Soniya:
India has revised export duties on key petroleum products including petrol, diesel, and Aviation Turbine Fuel (ATF), with the new rates coming into effect from 16 May 2026. The move is part of the government’s regular fuel taxation review mechanism based on fluctuations in global crude oil and refined fuel prices.
Under the revised structure, the Special Additional Excise Duty (SAED) on petrol exports has been increased to ₹3 per litre. Meanwhile, export duties on diesel and ATF have been significantly reduced. The diesel export levy has been cut from ₹23 per litre to ₹16.5 per litre, while ATF duty has been reduced from ₹33 per litre to ₹16 per litre.
In another important change, the government has removed the Road and Infrastructure Cess (RIC) on exported petrol, diesel, and ATF. However, domestic excise duties on petrol and diesel remain unchanged, meaning there will be no immediate impact on retail fuel prices within India.
The Ministry of Finance reviews petroleum export duties every fortnight depending on average international oil prices. These adjustments are aimed at balancing government revenue, export competitiveness, and domestic fuel stability.
Petroleum taxation in India includes multiple components such as excise duty, cess, and export levies. Aviation Turbine Fuel (ATF), which powers aircraft turbines, remains particularly important for the aviation sector due to its direct impact on airline operating costs.
The revised duty structure is expected to influence India’s refined petroleum exports while maintaining stability in domestic fuel markets.
