Last Updated:
Centre revises export duties from June 1, petrol at Rs 1.5 per litre, diesel at Rs 13.5, ATF at Rs 9.5, only for exports. Domestic excise on fuel remain unchanged.
Centre Reviews Fuel Export Levies Again as West Asia Tensions Persist
The Central government has revised export levies on petrol, diesel and aviation turbine fuel (ATF) for the next fortnight beginning June 1, while keeping domestic excise duty rates unchanged.
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 issued by the government, revised rates will come into effect from June 1, 2026.
Why export levies were introduced?
Export levies 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 said the measure was aimed at discouraging excessive exports and ensuring sufficient domestic supplies of petroleum products at a time when the conflict in West Asia was affecting global energy markets.
Officials noted that the duties are reviewed and revised every fortnight based on prevailing international market conditions. The previous revision came into force on May 16, 2026.
New rates effective June 1
Under the revised structure, exports of petrol will attract a duty of Rs 1.5 per litre. The entire amount will be collected as Special Additional Excise Duty, while no Road and Infrastructure Cess will be charged.
Exports of diesel will attract a duty of Rs 13.5 per litre. This amount will also be collected entirely as Special Additional Excise Duty, with no Road and Infrastructure Cess component.
For aviation turbine fuel, the government has fixed the export duty at Rs 9.5 per litre. The levy will be charged solely as Special Additional Excise Duty.
The revised rates will remain in force for the next fortnight unless further changes are announced during the next review.
International prices
The government said the duty structure is determined based on average international prices of crude oil, petrol, diesel and aviation turbine fuel prevailing since the previous review period.
Officials review global price movements every two weeks before deciding whether the duties should be increased, reduced or maintained.
The mechanism is intended to balance export opportunities for refiners with the need to maintain adequate domestic fuel supplies.
No change for domestic consumers
While export duties have been revised, there is no change in the existing excise duty rates on petrol and diesel sold for domestic consumption.
The government clarified that the latest notification applies only to exports of petroleum products.
As a result, excise duties on petrol and diesel cleared for use within India will continue at the current rates without any modification.
The revised levy structure comes as authorities continue to monitor developments in West Asia and their impact on global crude oil and fuel markets, while seeking to safeguard domestic energy availability.
Delhi, India, India
Read More
Source link
[ad_3]
