Petrol-Diesel New Update: Due to rising crude oil prices in the international market, petrol and diesel are becoming increasingly expensive in India these days, causing significant dismay among consumers. The rationale behind this is that Indian petroleum companies are currently incurring substantial losses, necessitating these price hikes.
Meanwhile, the Central Government has extended another major relief to Indian oil companies. The Modi government has announced a reduction in export duties on petrol, diesel, and ATF (Aviation Turbine Fuel). This move is expected to provide relief to the oil companies. The government has also issued an official notification to this effect.
According to the government’s order, the export duty on petrol has been reduced by ₹1.50, and on diesel by ₹13.50. Additionally, the tax levied on the export of ATF has been lowered by ₹9.50 per litre. These new rates will come into effect starting June 1, 2026.
What is the Government’s Objective?
The government decided to reduce export duties in light of the decline in crude oil prices in the international market. The primary objective of this measure is to ensure the continued supply of petrol and diesel within the country. Notably, the export duty rates had been revised as recently as May 16.
Incidentally, on Sunday, May 31, Indian oil companies did not implement any changes to the prices of petrol and diesel. However, within the last 17 days alone, petrol and diesel rates have been hiked four times. According to reports, petrol and diesel prices have collectively risen by approximately ₹7.50 per litre during the month of May.
Petrol Being Sold at Exorbitant Prices
In numerous cities across the country, petrol and diesel prices have skyrocketed. In some cities, petrol rates are being recorded at over ₹110 per litre. In Hyderabad, petrol is currently retailing at up to ₹115 per litre. Similarly, in Kolkata, the rate appears to be hovering around ₹110 per litre. Disruptions in the supply of crude oil—stemming from geopolitical tensions in the Middle East—have compelled oil companies to raise petrol and diesel prices, thereby imposing an additional financial burden on the public.
**What is ‘Export Duty’?** For your information, export duty is referred to as *niryat shulk*. It is an indirect tax levied by the Central Government as a source of revenue. When a country’s government supplies—that is, sells—its domestic products to another country, the tax imposed on those goods is known as export duty.
