DBT Bureau
Pune, 17 May 2026
The Indian government has imposed a fresh export duty on petrol and revised levies on diesel and aviation fuel as it moves to manage fuel supplies and shield domestic markets from escalating global crude oil prices.
The measures come against the backdrop of the West Asian crisis that began in late February 2026, which has driven international crude prices up by more than 50%, sharply increasing pressure on fuel costs.
After maintaining an 11-week freeze on domestic fuel prices despite rising global benchmarks, India has raised retail rates. In Delhi, petrol prices have increased from ₹94.77 per litre to ₹97.77 per litre, while diesel prices have moved up from ₹89.67 per litre to ₹90.67 per litre.
According to official Ministry of Finance gazette notifications, the government has levied a Special Additional Excise Duty (SAED) of ₹3 per litre on petrol exports (SAED: ₹3; Road & Infrastructure Cess (RIC): Nil).
The government has also set the duty on diesel exports at ₹16.5 per litre (SAED: ₹16.5; RIC: Nil) and imposed ₹16 per litre duty on exports of Aviation Turbine Fuel (ATF) (SAED only).
There has been no change in excise duty rates on petrol and diesel meant for domestic consumption, indicating the government’s focus on balancing export economics, domestic fuel availability and consumer protection amid volatile global energy markets.
