Key facts
- India increased export levies on diesel and aviation turbine fuel (ATF) from June 16.
- The special additional excise duty (SAED) on diesel exports rose by 50 paise per litre.
- The SAED on diesel exports is now Rs 14 per litre.
- The SAED on ATF exports increased by Rs 3 per litre.
- The SAED on ATF exports is now Rs 12.5 per litre.
- Domestic petrol and diesel prices remained unchanged on June 16, 2026.
- Domestic fuel prices provided consumers relief after recent hikes.
- Global crude oil prices are volatile.
- Geopolitical tensions are affecting energy supplies.
Effective June 16, India has implemented an increase in the special additional excise duty (SAED), commonly referred to as a windfall tax, on the export of diesel and aviation turbine fuel (ATF). This move signifies a shift in the government's approach to taxing fuel exports. The levy on diesel exports has been raised by 50 paise per litre, bringing the total duty to Rs 14 per litre. Concurrently, the duty on ATF exports has been increased by Rs 3 per litre, setting the new rate at Rs 12.5 per litre. These adjustments are part of India's strategy to manage its energy sector and potentially increase government revenue from oil exports. Despite these changes in export duties, domestic fuel prices for petrol and diesel remained steady on June 16, 2026. This stability in the domestic market has provided consumers with a period of relief following earlier price increases. The decision to keep retail prices unchanged comes at a time of significant volatility in the global crude oil market, influenced by geopolitical tensions that are impacting energy supplies worldwide. The government appears to be balancing the need to generate revenue from exports with the objective of maintaining affordable fuel prices for its citizens.