India Cuts Fuel Export Duties on June 1 Amid West Asia Crisis

India’s government has cut export duties on petrol, diesel, and aviation turbine fuel (ATF) effective June 1, 2026. Petrol duty falls to ₹1.5 per litre, diesel to ₹13.5 per litre, and ATF to ₹9.5 per litre. The move reflects lower international crude prices and maintains domestic fuel affordability during the West Asia crisis.

New Export Duty Rates Take Effect

The Indian government has set export duties at ₹1.5 per litre for petrol, ₹13.5 per litre for diesel, and ₹9.5 per litre for ATF starting June 1. These rates comprise the Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC). The revision follows the government’s fortnightly review process based on average international crude oil and fuel prices.

Significant Cuts From Previous Levels

Diesel duty has dropped sharply from ₹16.5 per litre on May 16 to ₹13.5 per litre. Petrol duty fell from ₹3 per litre to ₹1.5 per litre. ATF duty decreased from ₹16 per litre to ₹9.5 per litre. Since March 27, 2026, when export levies were first introduced, diesel duty has been cut from ₹55.5 per litre to ₹13.5 per litre.

Domestic Fuel Prices Remain Stable

The government has left excise duty rates on petrol and diesel sold in the domestic market unchanged. Domestic consumers will see no change in fuel prices following this review. The policy prioritizes domestic fuel availability while adjusting export incentives based on global market conditions.

Why Export Duties Keep Changing

Export levies were introduced March 27, 2026, to ensure adequate domestic petroleum supplies amid the West Asia crisis and volatile global oil markets. The government reviews rates every two weeks based on international crude oil and refined fuel prices. Lower international prices allow the government to reduce export duties while maintaining domestic price stability.

Final Thoughts

India’s latest export duty cuts reflect lower global crude prices and ongoing efforts to balance domestic fuel security with export revenue. With domestic prices unchanged, the move protects consumers while giving refiners modest export incentives in a volatile market.

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