Consumers received relief on fuel prices on Wednesday after private fuel retailer Nayara Energy reduced petrol prices by ₹5/litre and diesel prices by ₹3/litre across its nationwide network. State-owned oil marketing companies (OMCs) also lowered aviation turbine fuel (ATF) and commercial LPG prices following a decline in international crude oil prices as geopolitical tensions in West Asia eased.
Nayara Energy's move marks the first retail fuel price cut by any fuel retailer in more than two years. It follows a retreat in global crude oil prices after hostilities in West Asia subsided and key maritime shipping routes reopened, easing concerns over disruptions to crude oil and liquefied natural gas supplies.
The revised petrol and diesel prices have come into effect across Nayara Energy's network of more than 7,000 fuel stations. Actual retail prices, however, will vary across states depending on value-added tax (VAT) and other local levies.
The reductions coincide with the beginning of the month, when revisions in ATF, commercial LPG and export duties on petroleum products also took effect.
ATF Prices Cut
State-owned OMCs have reduced aviation turbine fuel prices by about ₹5/litre, effective Wednesday.
According to the latest price notification, ATF in Delhi now costs around ₹11/ litre.
The reduction is the first since the recent spike in fuel prices triggered by the West Asia conflict and is expected to provide some relief to domestic airlines, for which fuel is the single-largest operating expense. The actual financial benefit, however, will depend on individual airlines' procurement and fuel-hedging strategies.
The price cut follows a decline in international crude oil prices as geopolitical tensions eased and concerns over supply disruptions receded.
Earlier in June, the government introduced a voluntary price-stabilisation scheme under which the basic free-on-board (FOB) benchmark price of ATF for domestic airlines was fixed at ₹86.32/litre for up to three years.
Under the scheme, airlines pay the benchmark price along with airport charges, OMC margins and applicable taxes, taking the effective selling price to around ₹11/litre in Delhi, ₹114.50/litre in Mumbai and about ₹139/litre in Chennai.
Commercial LPG Becomes Cheaper
In another relief measure, State-run OMCs have reduced the price of 19kg commercial LPG cylinders by ₹183.50 with effect from Wednesday.
Commercial LPG now costs ₹2,930/cylinder, providing relief to hotels, restaurants and other commercial establishments.
The reduction is the first this year after commercial LPG prices climbed to a record ₹3,113/cylinder last month following the surge in crude oil prices during the escalation of tensions in West Asia.
There is, however, no change in the price of the 14.2kg domestic LPG cylinder used by households.
Govt Revises Export Duties
The Union government has also revised the special additional excise duty (SAED), commonly known as the windfall tax, on exports of petroleum products, effective 1 July 2026.
According to a notification issued by the finance ministry:
- Export duty on petrol has been increased to ₹4/litre from ₹1.50/litre.
- Export duty on diesel has been reduced to ₹8.50/litre from ₹14/litre.
- Export duty on aviation turbine fuel has been lowered to ₹7.50/litre from ₹12.50/litre.
The finance ministry clarified that there is no change in the excise duty on petrol and diesel sold in the domestic market.
The government-imposed export duties on diesel and ATF in March after tensions escalated in West Asia, with rates reviewed every fortnight. An export levy on petrol was introduced from 16 May 2026.
In the previous fortnightly review, the government had increased the windfall tax on diesel and ATF exports while leaving the levy on petrol unchanged.
The windfall tax mechanism was introduced to ensure adequate domestic availability of petroleum products and discourage excessive exports during periods of elevated global crude oil prices.
The latest reductions in retail fuel prices, ATF and commercial LPG, along with the revision in export duties, reflect improving conditions in global energy markets as crude oil prices soften following the de-escalation of tensions in West Asia, offering relief to consumers, airlines and commercial establishments while leaving domestic excise duties on petrol and diesel unchanged.
