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Indian Govt Raises Export Duty: Diesel Hiked to ₹14, ATF to ₹12.5 Per Litre

Indian Govt Raises Export Duty

The Indian Government has increased the export duty on diesel and Aviation Turbine Fuel (ATF), with the revised rates taking effect from June 16, 2026. Under the latest decision, diesel exports will attract a Special Additional Excise Duty (SAED) of ₹14 per litre, while ATF exports will be subject to a duty of ₹12.5 per litre. There has been no change in the export duty on petrol, which remains at ₹1.5 per litre.

The export duty was first introduced on March 27, 2026, as global crude oil and petroleum product prices surged due to the ongoing crisis in the Middle East. Higher international prices made exports more profitable for refiners, raising concerns about adequate domestic fuel supplies. The government’s latest move is aimed at ensuring that domestic demand for diesel and ATF is met before exports are prioritized.

Export duty rates are reviewed every 15 days based on the average international prices of crude oil and petroleum products. The latest revision follows the previous review conducted on June 1, 2026, and reflects changes in global market conditions over the past fortnight.

The increase in export duty is not expected to affect ordinary consumers. The revised rates apply only to fuel exports and do not change the excise duty on petrol or diesel sold within the country. As a result, fuel prices at retail outlets are likely to remain unchanged due to this decision.

The government’s objective is to maintain a balance between exports and domestic fuel availability while protecting the country from potential supply shortages during periods of global market uncertainty.