Government Hikes Export Duty on Diesel to ₹14/Litre and ATF to ₹12.5/Litre: New Rates Effective Today
Quick Summary
The Indian government has increased the windfall tax (export duty) on diesel exports to ₹14 per litre and on aviation turbine fuel (ATF) exports to ₹12.5 per litre for the fortnight starting June 16, 2026. The export duty on petrol remains unchanged at ₹1.5 per litre. These revised rates come into effect from today, June 16, 2026.
Full News Article key Changes in Export Duties
| Fuel Type | Previous Rate (₹/litre) | New Rate (₹/litre) | Increase |
|---|---|---|---|
| Diesel | ₹13.5 | ₹14.0 | +₹0.5 |
| ATF (Aviation Turbine Fuel) | ₹9.5 | ₹12.5 | +₹3.0 |
| Petrol | ₹1.5 | ₹1.5 | No Change |
The government has raised the
Special Additional Excise Duty (SAED)
on diesel exports from ₹13.5 per litre to ₹14 per litre.The duty on ATF exports has been significantly increased from ₹9.5 per litre to ₹12.5 per litre.
Official Notification Details
according to a notification issued by the Finance Ministry:-
The revised rates will come into effect from June 16, 2026 (today)- This is a fortnightly review of export duties on fuel- The levy applies for the next 14 days starting June 16
Why Has the Government Increased Export Duty?
The government has cited two main reasons for this increase:
1. Protect Domestic Fuel Availability:
The move is intended to ensure adequate fuel availability in the domestic market as international oil markets remain volatile due to tensions in West Asia
2. Volatile Global Oil Markets:
Rising tensions in West Asia, including potential conflicts involving Iran and the United States, have kept global oil markets unstable. The government wants to prevent excessive fuel exports that could impact domestic supply
Context:
Previous Rate Changes this increase follows a series of previous adjustments to fuel export duties:-
June 1, 2026: India had reduced export duties on petrol to ₹1.5/litre, diesel to ₹13.5/litre, and ATF to ₹9.5/litre for two weeks- March 26, 2026 : India had previously reimposed windfall tax on diesel at ₹21.5/litre and ATF at ₹29.5/litre- April 11, 2026 : India had sharply increased diesel export duty to ₹55.5/litre and ATF to ₹42/litre The current rates represent a gradual reduction from the higher levels seen in April 2026, but the government has now increased them again for the June 16 fortnight.
Impact on Different Stakeholders For Exporters:
Diesel exporters will face slightly higher costs (₹0.5 per litre more)- ATF exporters will face significantly higher costs (₹3.0 per litre more)- This may reduce profit margins on fuel exports
For Domestic Market:-
The increased export duty is expected to discourage fuel exports- More diesel and aviation fuel should remain available in India- This helps stabilize domestic fuel supply during global volatility
For Aviation Sector:- Airlines operating in India may see increased domestic fuel costs if refineries pass on the higher duty- However, the primary goal is to ensure ATF availability for domestic aviation needs
Government’s Fortnightly Review Mechanism
The Finance Ministry conducts a fortnightly review of fuel export duties to:- Monitor global oil price movements- Assess domestic fuel availability- Adjust export levies to balance domestic and international needs- Respond to geopolitical events affecting oil Markets this mechanism allows the government to make quick adjustments based on changing market conditions.
Petrol Export Duty Remains Unchanged notably,
The export duty on petrol remains at ₹1.5 per litre, unchanged from the previous fortnight. This suggests that the government is not facing the same supply concerns for petrol as it is for diesel and aviation fuel.
International Context the export duty increase comes amid:-
West Asia tensions: Geopolitical conflicts in the Middle East region-
Iran-US uncertainty: Potential peace agreements between Iran and the United States remain uncertain- Global oil market volatility: Energy prices fluctuating due to supply concerns-
Energy security priorities:Countries focusing on ensuring domestic fuel availability
What Experts Say industry experts note that windfall taxes on fuel exports are typically used when:-
Global prices are significantly higher than domestic prices- There’s risk of domestic shortage due to excessive exports- The government wants to capture some of the windfall profit for public Revenue the fortnightly review allows the government to adjust quickly to market changes rather than waiting for longer policy cycles.
Key Takeaway.
Effective Date: New rates apply from June 16, 2026 (today)
2. Duration: Rates will remain for 14 days (next fortnight)
3. Diesel: Increased by ₹0.5 per litre (from ₹13.5 to ₹14)
4. ATF: Increased by ₹3.0 per litre (from ₹9.5 to ₹12.5)
5. Petrol: No change at ₹1.5 per litre
6. Purpose: Protect domestic fuel availability amid West Asia tensions
7. Authority: Finance Ministry notification
About Windfall Tax windfall tax (also called special additional excise duty or SAED) is:-
A temporary levy on exports when global prices exceed domestic prices- Designed to prevent excessive exports during price surges- Reviewable every fortnight based on market conditions- Separate from regular export duties and excise Taxes this mechanism allows the government to capture excess profits from exporters while protecting domestic supply.
This article contains factual information about the Indian government’s export duty increase on diesel and aviation fuel based on official Finance Ministry notifications.