Fuel Excise Duty: The government has once again changed the duty on export of petrol, diesel and aviation fuel i.e. ATF. Duty has been increased on the export of petrol while it has been reduced on the export of diesel and aviation fuel.
what are the new rates
According to the new order, now duty on export of petrol will be Rs 4 per liter which was earlier Rs 1.5. Duty on export of diesel has been reduced from Rs 14 to Rs 8.5 per litre. It has been reduced from Rs 12.5 to Rs 7.5 per liter on export of aviation fuel.
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No impact on common man’s pocket
The most important thing to understand here is that this duty is only on the oil which is sent out of the country. It has no direct impact on petrol and diesel sold at petrol pumps within the country, that is, the price of oil filled in your car will not change due to this order.
Why was this duty imposed?
Amidst the tension in West Asia and uncertainty regarding the Strait of Hormuz, the government had imposed this special duty on the export of petrol, diesel and ATF from March 27, 2026. The objective was that instead of sending oil abroad, companies should keep oil available in the country so that there is no shortage in the domestic market. These rates are increased and decreased every 15 days according to the international market prices. Increase in duty on petrol and decrease in diesel and aviation fuel shows the change in these prices.
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Maldives and Mauritius also exempted
Along with this, the government has made another small but important change. Government oil companies get exemption from this duty on export of petrol, diesel and ATF in some neighboring countries. Earlier Nepal, Bhutan, Bangladesh and Sri Lanka were in this list and now Maldives and Mauritius have also been added to it. This change was made through several notifications issued on June 30 and is effective with immediate effect. The new rates have become effective from July 1, 2026.

