India Revises Export Duties on Petrol and Diesel

India Revises Export Duties on Petrol and Diesel

India revised export duties on petroleum products on 15 May 2026, and the changes took effect from 16 May 2026. The revision covered petrol, diesel and Aviation Turbine Fuel (ATF), which are refined petroleum products used in transport and aviation.

Export Duty Structure on Petroleum Products

The Special Additional Excise Duty (SAED) on petrol exports was increased to ₹3 per litre. The export duty on diesel was reduced to ₹16.5 per litre from ₹23 per litre. The export levy on ATF was cut to ₹16 per litre from ₹33 per litre.

Road and Infrastructure Cess and Domestic Duties

The Road and Infrastructure Cess (RIC) on exported petrol, diesel and ATF was removed. Domestic excise duties on petrol and diesel remained unchanged, and retail fuel prices within India were not altered by this revision.

Review Mechanism for Fuel Duties

The duty structure on petroleum exports is reviewed fortnightly on the basis of average international prices of crude oil and refined fuels. Such reviews are used in India’s fuel taxation framework for export-linked adjustments.

Important Facts for Exams

  • Special Additional Excise Duty is a levy used in India’s petroleum taxation system.
  • Aviation Turbine Fuel is the standard fuel used in aircraft turbines.
  • Road and Infrastructure Cess is a cess levied for infrastructure-related purposes in India.
  • Petrol and diesel are refined products derived from crude oil.

Petroleum Product Taxation in India

India uses a combination of excise duty, cess and export levies for petroleum products. The Ministry of Finance issues notifications for changes in these duties under the Union taxation framework.

Leave a Reply

Your email address will not be published. Required fields are marked *