India Lowers Aviation Fuel Prices and Revises Export Duties

The Government of India reduced aviation turbine fuel (ATF) prices by approximately ₹5 per litre effective July 1, 2026, bringing the price in Delhi to roughly ₹110 per litre. This reduction follows a decline in international crude prices triggered by a ceasefire agreement between the United States and Iran, ending conflict in West Asia and easing supply disruptions linked to the Strait of Hormuz.

Simultaneously, the Ministry of Finance revised the Special Additional Excise Duty on petroleum exports for the fortnight beginning July 1. The government increased the duty on petrol exports to ₹4 per litre from ₹1.5, while lowering the levy on diesel to ₹8.5 per litre and ATF to ₹7.5 per litre. Export duty exemptions were also expanded to include Mauritius and the Maldives, joining Nepal, Bhutan, Bangladesh, and Sri Lanka.

To support domestic manufacturing, the government extended a full customs duty exemption on 40 critical petrochemical products until July 15, 2026. This measure helps the pharmaceutical, textile, and automotive sectors transition as regional stability returns. Additionally, the Ministry of Petroleum and Natural Gas withdrew emergency regulatory curbs on petrol and diesel sales effective July 1, as domestic fuel supplies have stabilized.