Centre cuts ATF price by ₹5 per litre; domestic fuel excise duty unchanged

The Centre has reduced the price of Aviation Turbine Fuel (ATF) for Indian domestic airlines by ₹5 per litre, bringing the effective price down to ₹110 per litre from July 1. The revision comes as part of the government's latest review of fuel pricing and export duties, while excise duty on petrol and diesel sold in the domestic market remains unchanged.

According to an official notification issued by the Ministry of Finance, the latest revisions also reset export duties on petrol, diesel and ATF under the Special Additional Excise Duty (SAED) framework. The revised rates came into effect on July 1.

The lower ATF price offers cost relief to domestic airlines, even as the government continues to recalibrate export levies in line with movements in global energy markets.

Export duties revised under fortnightly review

The Finance Ministry has updated SAED rates applicable to exports of petroleum products following its scheduled fortnightly review.

The revised export duties are:

• Petrol: ₹4 per litre
• Diesel: ₹8.5 per litre
• Aviation Turbine Fuel (ATF): ₹7.5 per litre

The ministry said the Road and Infrastructure Cess (RIC) remains nil for petrol and diesel exports, making the SAED the entire export levy in both cases. The revised ATF export duty has been notified under Notification No. 37/2026.

Review linked to international fuel prices

The government reviews export duties every two weeks based on the average international prices of crude oil, petrol, diesel and aviation turbine fuel recorded since the previous assessment.

The latest revision follows the previous review conducted on June 16.

The fortnightly mechanism was introduced on March 27 to safeguard domestic availability of petroleum products by discouraging excessive exports during heightened geopolitical uncertainty in West Asia.

More countries added to exemption list

Alongside the revised duty structure, the Centre has expanded the list of countries eligible for export duty exemptions.

Public sector oil companies exporting petrol, diesel and ATF to the following countries will continue to remain exempt from the export levy:

• Nepal
• Bhutan
• Bangladesh
• Sri Lanka
• Mauritius
• Maldives

Mauritius and the Maldives have been added to the exemption list under the latest notification.

No immediate impact on fuel prices for consumers

While exporters will operate under the revised duty structure from July 1, consumers purchasing petrol and diesel in India will not see any immediate change in fuel taxes.

The Finance Ministry has left domestic excise duty on petrol and diesel unchanged, meaning retail fuel taxation remains unaffected by the latest notifications.

The only direct domestic pricing change announced in this review is the ₹5 per litre reduction in ATF for Indian domestic airlines, which could provide some operating cost relief for carriers amid fluctuating fuel prices.

As global crude oil prices continue to influence government policy, the next fortnightly review will determine whether export levies and aviation fuel prices undergo further adjustments.