The Indian government has lowered export duties on petrol, diesel and aviation fuel for the first half of June 2026 in an effort to support refiners amid a sharp fall in overseas shipments.From 1 June, the combined levy stands at ₹1.5 per litre on petrol exports, ₹13.5 per litre on diesel and ₹9.5 per litre on aviation turbine fuel (ATF).
Domestic excise duties on petrol and diesel remain unchanged.The government reviews these export taxes every two weeks, adjusting them according to global price trends. The duties were first introduced in late March to discourage exports and ensure adequate supplies at home during the West Asia crisis.India’s fuel exports hit a record monthly low in May as conflicts in Ukraine and West Asia disrupted global supplies and trade routes.
Outbound shipments of diesel, jet fuel and petrol fell to about 850,000 barrels per day (bpd), down 9% from April and 33% from the previous year, according to shipping data.Reliance Industries, which accounted for 88% of India’s fuel exports in May, has been particularly affected.
The company’s overseas sales dropped significantly compared with a year earlier.Fuel exports now make up a larger share of India’s total exports, contributing 10.2% by value in April. The May decline is estimated to have cost the country $1.8–2 billion in potential revenue.However, there are signs of a possible rebound. Western countries facing shortages, including the UK and parts of Europe, are reconsidering restrictions on fuels made from Russian crude oil.
India had exported substantial volumes to these markets before the bans.Senior refining officials say a return of demand from Europe and the UK could help revive Indian fuel exports in the coming weeks.The government’s decision to ease export levies comes as global prices for petrol and diesel have risen sharply due to supply disruptions in West Asia.
