New Delhi: The Central Government has announced a major policy decision regarding fuel exports, revealing a significant reduction in export duties on petrol, diesel, and aviation turbine fuel. According to an official statement released on Saturday, May 30, the revised tariff structure will come into effect on June 1. Under the new guidelines, the export duty on petrol has been cut by $1.50$ rupees per litre, while the duty on diesel saw a substantial reduction of $13.50$ rupees per litre.
Additionally, the government has lowered the export tax on aviation turbine fuel by $9.50$ rupees per litre. Senior officials clarified that this specific fiscal adjustment is strictly aimed at outbound shipments and will have no direct impact on domestic retail prices, as domestic taxation structures remain entirely unchanged.
This strategic decision to ease export duties coincides with a minor softening of international crude oil prices. The government had originally introduced this specialized export tax on March 27, 2026, to safeguard domestic fuel availability and secure local supply chains against supply shocks triggered by ongoing geopolitical tensions in West Asia. The export tariff rates were last revised on May 16.
Meanwhile, domestic fuel prices remained stable on Sunday, May 31, as oil marketing companies chose to keep retail rates unchanged following a period of steady increases. Domestic prices were last hiked on Monday, capping off a volatile month where retail petrol and diesel costs surged by approximately $7.50$ rupees per litre across May. Notably, this recent upward trend marks the first major retail price hike for domestic consumers since 2022.
As it stands on May 31, petrol in the national capital of New Delhi is retailing at $102.12$ rupees per litre, while diesel is priced at $95.20$ rupees per litre. However, localized taxation and freight charges have pushed retail fuel prices past the $110$-rupee threshold in several major metropolitan areas across the country. Consumers in Kolkata are currently paying well over $110$ rupees per litre for petrol, while rates in Hyderabad have breached the $115$-rupee mark, despite historical reductions in central excise duties that continue to remain in place.
