The Centre has revised the Special Additional Excise Duty (SAED) on fuel exports for the next fortnight beginning July 1, raising the levy on petrol exports while reducing the duties on diesel and aviation turbine fuel (ATF).According to a government notification issued on Tuesday, the SAED on petrol exports has been increased to ₹4 per litre, while the duty on diesel exports has been reduced to ₹8.5 per litre from ₹14 per litre. The sharp reduction in the diesel export duty reflects easing concerns over domestic fuel availability as global oil markets have stabilised following the recent de-escalation of tensions in West Asia.
The levy on ATF exports has also been cut to ₹7.5 per litre from ₹12.5 per litre. Lower export duties on diesel and ATF could improve export economics for refiners, while the higher levy on petrol suggests the government continues to prioritise adequate domestic supplies of the fuel.
The export levies on petrol, diesel and ATF were introduced on March 27, 2026, to ensure adequate domestic availability of petroleum products by discouraging exports amid the West Asia crisis. The duties were imposed after supply disruptions and geopolitical uncertainty pushed up global energy prices, prompting the government to ring-fence domestic fuel supplies.The government reviews these rates every fortnight based on the average international prices of crude oil, petrol, diesel and ATF since the previous review. This allows export duties to move in line with changing global market conditions rather than remain fixed.The Centre has also extended the exemption from export levies for public sector oil marketing companies exporting petrol, diesel and ATF to Mauritius and the Maldives. Earlier, the exemption applied only to exports to Nepal, Bhutan, Bangladesh and Sri Lanka. The exemption is aimed at ensuring uninterrupted fuel supplies to India’s strategic partner countries in the neighbourhood and the Indian Ocean region.The notification clarified that there is no change in the existing excise duty rates on petrol and diesel meant for domestic consumption. This means retail fuel prices are not directly affected by the latest changes, as the revised duties apply only to exports.The revision follows the previous fortnightly review on June 15, when the government had raised export duties on diesel and ATF while leaving the levy on petrol exports unchanged to safeguard domestic fuel supplies amid tensions in West Asia. The latest revision indicates the government is gradually rolling back some of the emergency measures as supply risks ease, while retaining flexibility to respond if global conditions worsen again.Also Read: India tightens fuel export curbs with higher ATF and diesel duties
Source link
