The Indian government has adjusted its export taxation on petroleum products, raising the Special Additional Excise Duty (SAED) on petrol while reducing certain levies on diesel and Aviation Turbine Fuel (ATF), with the changes taking effect from May 16, 2026.
According to the Finance Ministry, the SAED has been set at Rs 3 per litre on petrol exports, Rs 16.5 per litre on diesel, and Rs 16 per litre on ATF. The Road and Infrastructure Cess (RIC) on these products has been brought down to nil under the revised structure. Domestic excise duties remain unchanged, meaning there will be no immediate effect on retail fuel prices for consumers across the country.
This move forms part of the Centre’s strategy to boost revenue from petroleum exports while safeguarding domestic fuel availability and price stability. Officials have described the adjustments as a flexible response to ongoing volatility in global crude oil markets and supply disruptions stemming from geopolitical tensions in West Asia.
The latest revision aligns with the government’s fortnightly review of export duties. These levies were initially introduced on March 27, 2026, amid global supply uncertainties. Since then, authorities have periodically fine-tuned the rates based on international market dynamics. In a previous adjustment effective May 1, export duties on diesel and ATF were lowered to help balance domestic supply needs with export demand.
The policy seeks to prevent excessive exports during periods of elevated global prices, thereby curbing potential windfall gains for exporters that could compromise domestic fuel security.
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Industry observers note that the new duties, particularly the fresh imposition on petrol exports—which previously carried no such levy—may moderately affect refiners with significant export focus, including companies like Reliance Industries, potentially influencing their margins. In contrast, public sector oil marketing companies, which primarily serve the domestic market, are likely to experience minimal direct impact.
The government continues to emphasise protecting Indian consumers by adjusting export incentives in response to international conditions. As reported by ANI, the updated levies include SAED of Rs 3 per litre (with RIC at nil) on petrol exports, Rs 16.5 per litre on diesel, and Rs 16 per litre on ATF.
Fuel pricing remains a critical factor in India’s economy, influencing transportation costs across key sectors such as agriculture, manufacturing, and services. Experts have cautioned that sustained rises in global crude prices could exert upward pressure on inflation and the country’s import bill.
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