The Indian government has announced new export levies on petroleum products, effective June 1, 2026. The revised duties are set at ₹1.5 per litre for petrol, ₹13.5 per litre for diesel, and ₹9.5 per litre for aviation turbine fuel (ATF). Notably, excise duties on petrol and diesel sold in the domestic market will remain unchanged.
These export levies, which include the Special Additional Excise Duty (SAED) and the Road and Infrastructure Cess (RIC), were initially introduced on March 27, 2026, in response to the West Asia crisis. The intent behind these duties is to prioritize the domestic availability of petroleum products by making exports less attractive during times of supply concerns.
The government adjusts these rates every two weeks, taking into account the average international prices of crude oil and petroleum products since the last review. The most recent change took effect on May 16, 2026.
Key points:
- Why this story matters: The adjustments in export levies reflect the government’s strategy to maintain domestic fuel availability amid fluctuating global oil prices.
- Key takeaway: The new export duties aim to balance domestic needs with international market dynamics in the petroleum sector.
- Opposing viewpoint: Critics argue that high export levies may hinder the competitiveness of Indian oil in global markets, potentially impacting revenue from exports.
