Centre cuts export tax on petrol, diesel and jet fuel from June 1; domestic rates remain unchanged – Firstpost

Amid the ongoing crisis in
West Asia, the Central Government revised export taxes on petrol, diesel and aviation turbine fuel (ATF) for the next fortnight. The changes will take effect from June 1, and the domestic excise duty will remain unchanged.

It is pertinent to note that the export duties were introduced earlier this year to ensure adequate domestic availability of petroleum products amid disruptions and uncertainty caused by the West Asia crisis. According to the latest notification, the new levies would come into effect from June 1, 2026.

Export taxes in the form of Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC) on petrol, diesel and ATF exports were first imposed on March 27, 2026. The government at that time said that the measures aimed at discouraging excessive exports and ensuring sufficient domestic supplies of petroleum products.

Officials maintained that the duties are reviewed and revised every fortnight based on the current circumstances in the international markets. It is important to note that the previous revision came into force on May 16, 2026.

What are the new rates?

The rates for the next fortnight beginning 1st June, 2026, have been notified by the Central Government today. Consequently, the rate of duty will be Rs 1.5 per litre (SAED- Rs 1.5; RIC- Nil) on exports of petrol, Rs 13.5 per litre (SAED – Rs 13.5; RIC – Nil) on exports of diesel and Rs 9.5 per litre (SAED only) on exports of ATF.

The amount will be collected as Special Additional Excise Duty, while no Road and Infrastructure Cess will be charged. There will be no change in the Road and Infrastructure Cess component as well. The Centre noted that the revised rates would remain in force for the next fortnight unless further changes are announced during the next review.

In the notification, the government maintained that the duty structure is set based on average international prices of crude oil, petrol, diesel and aviation turbine fuel prevailing since the previous review period. Officials review the global price movements every two weeks, before determining whether the duties should be increased, reduced or maintained.

Hence, the mechanism is intended to balance export opportunities for refiners with the need to maintain adequate domestic fuel supplies. The government made it clear that there will be no change in the existing excise duty rates on petrol and diesel sold for domestic consumption.