India
oi-Ashish Rana
The Centre has revised the special additional excise duty on the export of petrol, diesel and aviation turbine fuel (ATF), with the new rates set to come into effect from July 1, 2026. While the export duty on petrol has been increased, the levy on diesel has been reduced. The government has also expanded export exemptions for select neighbouring countries.
Effective July 1, 2026, India’s export duty on petrol is Rs 4/litre, diesel is Rs 8.5/litre, and ATF is Rs 7.5/litre, with Mauritius and Maldives now included in exemptions for state-run OMCs.
New Export Duty Rates Effective July 1
According to a notification issued by the Ministry of Finance on June 30, the export duty on petrol has been raised to Rs 4 per litre, while the duty on diesel has been reduced to Rs 8.5 per litre. The export levy on ATF has been retained at Rs 7.5 per litre.
The revised rates will remain applicable for the next fortnight and will continue to be reviewed periodically based on changes in international crude oil and refined fuel prices.
Exemption Extended to Mauritius and Maldives
The government has also widened the list of destinations eligible for export duty exemption by including Mauritius and the Maldives for exports made by state-run oil marketing companies (OMCs).
These countries now join Nepal, Bhutan, Bangladesh and Sri Lanka, which were already covered under the exemption framework.
Rs 4 per litre Special Aditional Excise Duty on exports of petrol, Rs 8.5 per litre on exports of diesel and Rs 7.5 per litre on exports of ATF (Aviation Turbine Fuel). Exemption extended to Mauritius and Maldives other than Nepal, Bhutani, Bangladesh and Sri Lanka. No change in… pic.twitter.com/qcTqhX3XN7
— ANI (@ANI) June 30, 2026
No Change for Domestic Fuel Supplies
The latest notification clarifies that there has been no change in the existing excise duty on petrol and diesel meant for domestic consumption. The revised rates apply only to exports of petroleum products.
The move is aimed at aligning export duties with prevailing global market conditions while ensuring that domestic fuel taxation remains unchanged.
Gazette Notification Confirms Changes
The Ministry of Finance, through Gazette Notification No. 36/2026-Central Excise dated June 30, amended the earlier notification issued on March 26, 2026.
The notification substitutes the export duty entries with “Rs. 4 per litre” for petrol and “Rs. 8.5 per litre” for diesel, and states that the revised rates will take effect from July 1, 2026. The ATF export duty remains unchanged at Rs. 7.5 per litre.
