Government gives big relief on export of petrol and diesel
The Central Government has made major changes in the rules related to export of petroleum products. From June 1, 2026, the export duty on petrol, diesel as well as Aviation Turbine Fuel (ATF) has been reduced. This decision issued by the Finance Ministry will have a direct impact on those companies that sell refined oil from India abroad. The government has made it clear that there has been no change in the excise duty on fuel used within the country. This means that the price of oil sold at petrol pumps will not be lower than this, rather this decision has been taken only keeping international trade in mind.
New rates will be applicable from June 1
The government reviews tax rates every fortnight (15 days) based on the prices of crude oil in the international market. These rates were last changed on May 16, 2026. Now after a new review, it has been decided that from June 1, Special Additional Excise Duty (SAED) will be levied on the export of petrol at the rate of only ₹ 1.5 per liter. At the same time, on export of diesel it has been reduced to ₹ 13.5 per liter. This duty for aviation fuel (ATF) will now be ₹ 9.5 per litre. The special thing is that the 'Road and Infrastructure Cess' (RIC) imposed on the export of both petrol and diesel has been kept zero.
Why was the special tax imposed?
The roots of this decision are a few months old. This year, on March 27, 2026, the government had imposed this special tax on the export of aviation fuel including petrol and diesel. At that time, tensions were increasing in West Asia and the geopolitical crisis was deepening. In such a situation, the government had taken this step to ensure that there is no shortage of petroleum products in the domestic market. The main objective of this tax was to prevent companies from exporting oil in large quantities and to maintain adequate supply within the country.
Inflation hits domestic market
Even though companies have got relief on the export front, the common man is currently struggling with inflation. There was a huge jump in the prices of petrol and diesel on May 25, which was the fourth consecutive increase in less than two weeks. After this, petrol crossed the ₹ 100 mark in Delhi. After the latest increase, petrol in the capital Delhi has become costlier by ₹ 2.61 to ₹ 102.12 per liter, while diesel has increased by ₹ 2.71 and is being sold at ₹ 95.20 per liter. Same is the situation in metros also. In Kolkata, petrol has become ₹ 113.51 and diesel ₹ 99.82 per liter. In Mumbai, consumers have to pay ₹ 111.21 for one liter petrol and ₹ 97.83 for diesel. In Chennai too, petrol is being sold at ₹ 107.77 and diesel at ₹ 99.55.
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