NEW DELHI — In its latest fortnightly review of energy taxes, the Government of India has announced an upward revision in the export duties levied on diesel and Aviation Turbine Fuel (ATF). Meanwhile, the export levy on petrol remains completely unchanged.
The newly revised rates are slated to take effect immediately for the fortnight commencing June 16, 2026.
The Fortnightly Review Mechanism
The adjustment comes as part of the government’s ongoing fortnightly calibrated tax strategy, which mirrors fluctuations in international oil prices and refining margins. By dynamically altering these duties, the government aims to balance domestic supply security with windfall gains accumulated by oil marketing companies and refiners exporting fuel to international markets.
Key Highlights of the June 16 Revision
- Diesel: Hit with an increased export duty, reducing the profit margins for refiners moving the fuel out of domestic borders.
- Aviation Turbine Fuel (ATF): Jet fuel exports will now attract a higher duty, a move influenced by shifting global aviation fuel margins.
- Petrol: The government chose to maintain a status quo on petrol, keeping its export duty unchanged for the current cycle.
Market analysts note that while the hike will marginally compress the near-term export margins for domestic private refiners, it ensures stable revenue generation for the exchequer amidst volatile global energy trade dynamics.
