Govt Raises Diesel, ATF Export Duty In Fortnightly Review; Petrol Levy Stays At ₹1.5 Per Litre

The government has increased export duty on diesel and aviation turbine fuel (ATF) as part of its latest fortnightly review, effective from 16 June.

Diesel export duty has been raised to ₹14 per litre from ₹13.5 per litre, while aviation turbine fuel (ATF) export duty has jumped to ₹12.5 per litre from ₹9.5 per litre. The duty on petrol exports remains unchanged at ₹1.5 per litre.

Excise duty rates on petrol and diesel meant for domestic consumption have not been altered.

Why These Duties Exist

The government first introduced export levies on diesel and ATF on 26 March, in response to escalating tensions in West Asia following the US-Israel attack on Iran and the subsequent retaliation.

The duty on petrol exports was added later, on 16 May. These levies are commonly referred to as windfall taxes, designed to ensure adequate domestic availability of petroleum products by making exports less attractive at a time when global crude prices have risen sharply due to the conflict.

The underlying goal is to prevent exporters from profiting unduly from the price differential created by the war, while ensuring fuel supplies remain sufficient within India.

How The Rates Have Moved

Since the levies were first introduced, the Central Board of Indirect Taxes and Customs has reviewed and adjusted the rates every fortnight based on prevailing oil prices and market trends.

Also Read - Market Midday, 16 June 2026: Sensex, Nifty Rise; IT, FMCG Stocks Lead Gains

In the previous review for the fortnight beginning 1 June, diesel export duty stood at ₹13.5 per litre, ATF at ₹9.5 per litre and petrol at ₹1.5 per litre.

The latest revision marks a notable jump in the ATF rate in particular, even as the petrol levy has held steady across the last two reviews.

Sources:

The Hindu

Business Standard