Amid softening oil prices, Centre makes petrol export comparatively easy:Reduces taxes exporters pay but keeps the same for consumers

Amid softening global crude oil prices, the Centre has made petrol exports comparatively easier by reducing taxes that exporters pay, but has kept the duties unchanged that consumers pay on the fuel. The Central Government has notified revised export levies on petrol, diesel and aviation turbine fuel for the next fortnight beginning June 1, citing the need to ensure domestic availability of petroleum products amid the West Asia crisis. The rates will be lower for petrol, but will remain high for diesel and ATF, while domestic excise duty rates stay unchanged. 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. -Ministry of Finance notification How govt determines export taxes on fuel? 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. – Notification How much export taxes Centre levies? For the fortnight starting June 1, the Centre has set the duty at Rs 1.5 per litre on exports of petrol, comprising SAED of ₹1.5 and RIC of Nil. For diesel, the rate will be ₹13.5 per litre, with SAED at ₹13.5 and RIC at Nil. For ATF, the levy will be ₹9.5 per litre under SAED only. The government clarified that there will be no impact on domestic consumers from the change. There is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption. – Notification Why govt levied additional taxes on fuel exports amid West Asia crisis? Introduced on 27 March 2026, the additional export duties are linked to global price movements to keep fuel within the country when international rates spike. With West Asia tensions keeping crude and product markets volatile, the fortnightly review system allows New Delhi to adjust disincentives quickly. The next revision will again be based on average international prices of crude oil, petrol, diesel and ATF.