The Government of India has raised export duties on diesel and Aviation Turbine Fuel (ATF) in the latest fortnightly review of petroleum product levies, according to a report by Akashvani / News on AIR. The revised duties take effect from June 16, 2026, as part of ongoing efforts to ensure adequate domestic supply of fuels during the West Asia crisis.
Revised Export Duty Rates
The Special Additional Excise Duty (SAED) on diesel exports has been increased to ₹14 per litre, up from ₹13.05 per litre. For ATF, the export duty now stands at ₹12.05 per litre, a significant hike from the previous ₹9.05 per litre. The export duty on petrol remains unchanged at ₹1.05 per litre. There is no change in the existing duty rates on petrol and diesel cleared for domestic consumption.
| Product | Previous Duty (₹/litre) | New Duty (₹/litre) | Change (₹) |
|---|---|---|---|
| Diesel | 13.05 | 14.00 | 0.95 |
| ATF | 9.05 | 12.05 | 3.00 |
| Petrol | 1.05 | 1.05 | 0.00 |
Policy Rationale and Context
The government introduced export levies on petroleum products from March 27, 2026, to discourage overseas shipments and prioritise supplies for the domestic market. The latest revision, part of a fortnightly review mechanism, comes "amid continuing efforts by the Centre to ensure adequate domestic availability of petroleum products in view of the ongoing West Asia crisis," as reported by Akashvani. The West Asia crisis has created supply uncertainties, prompting the government to tighten export controls on key fuels.
Implications for Trade
The higher export duties are expected to reduce the profitability of exporting diesel and ATF from India, likely redirecting supplies to the domestic market. Importers of Indian diesel and ATF, particularly in neighbouring countries that rely on Indian refined products, may face supply constraints or higher prices. The unchanged petrol duty indicates the government is less concerned about petrol availability or considers current domestic supply adequate. Trade policy professionals and customs brokers should note that the SAED applies at the point of export and must be calculated at the new rates for shipments cleared on or after June 16, 2026.
The government's fortnightly reviews allow rapid adjustment of duties in response to evolving market conditions. The West Asia crisis remains the primary driver, with officials monitoring global supply chains and domestic inventory levels. Exporters of diesel and ATF should expect continued volatility in duty rates as the situation develops. The unchanged domestic duty structure provides stability for local consumers, while export-oriented refineries face increasing regulatory pressure to keep products within India.
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