ATF price slashed by Rs 5 per litre for domestic airlines, fuel rate set at Rs 110

NEW DELHI: The Centre on Wednesday revised the Aviation Turbine Fuel (ATF) for Indian domestic airlines, reducing it by Rs 5 per litre, with the effective price being brought down to Rs 110 per litre. On Tuesday, the Centre revised export duties on petrol, diesel and Aviation Turbine Fuel for the fortnight starting July 1, while keeping excise duty on petrol and diesel sold in India unchanged.

The Ministry of Finance on Tuesday issued two notifications updating the Special Additional Excise Duty (SAED) on fuel exports. The move is part of the fortnightly review of export levies, introduced on March 27 to ensure domestic availability of petroleum products by discouraging exports amid the West Asia crisis.

The export duty on petrol has been set at Rs 4 per litre and on diesel at Rs 8.5 per litre. In both cases, the Road and Infrastructure Cess (RIC) remains nil, so the SAED makes up the entire export levy. Notification No. 37/2026 fixes the SAED on ATF exports at Rs 7.5 per litre. All three revised rates take effect from July 1, an official statement said.

Rs 4 per litre Special Aditional Excise Duty on exports of petrol, Rs 8.5 per litre on exports of diesel and Rs 7.5 per litre on exports of ATF (Aviation Turbine Fuel). Exemption extended to Mauritius and Maldives other than Nepal, Bhutani, Bangladesh and Sri Lanka. No change in… pic.twitter.com/qcTqhX3XN7

— ANI (@ANI) June 30, 2026

The government reviews these rates every two weeks based on the average international prices of crude oil, petrol, diesel and ATF since the last review. The previous revision was done on June 16.

Along with the rate changes, the Centre has expanded the list of countries exempted from this export duty. Earlier, exports of petrol, diesel and ATF by public sector oil companies to Nepal, Bhutan, Bangladesh and Sri Lanka were exempt. That exemption now extends to Mauritius and the Maldives as well.

Importantly, there is no change in the existing excise duty on petrol and diesel cleared for domestic consumption. So while exporters will see their tax outgo change from today, consumers buying fuel at pumps in India will not see a direct impact from these notifications.

In short, export duties have been reset at Rs 4/litre for petrol, Rs 8.5/litre for diesel and Rs 7.5/litre for ATF from today, with new exemptions for Mauritius and Maldives, but domestic fuel taxes remain unchanged. (ANI)