The Central Government has revised export duties on key petroleum products, increasing the levy on diesel and aviation turbine fuel (ATF) while reducing the duty on petrol exports. The revised rates came into effect on July 16, as part of the government's periodic review aimed at ensuring adequate fuel availability in the domestic market amid continuing volatility in global crude oil markets.

Under the latest revision, the export duty on diesel has been increased from ₹8.50 per litre to ₹15.50 per litre, marking a rise of ₹7 per litre. Similarly, the duty on aviation turbine fuel (ATF) has been raised from ₹7.50 per litre to ₹14.50 per litre.

In contrast, exporters of petrol have received partial relief, with the export duty reduced from ₹4 per litre to ₹2.50 per litre.

The changes apply exclusively to fuel exports and do not affect domestic retail fuel prices.

Move Aims to Protect Domestic Supplies

According to the government, the revised export duties have been introduced to prevent shortages of petroleum products within the country during a period of uncertainty in international crude oil markets.

Officials said higher export duties discourage refiners from diverting larger volumes of diesel and ATF to overseas markets solely for higher profits, thereby helping maintain sufficient supplies for domestic consumption.

The government reviews these duties every fortnight based on prevailing international market conditions.

Review Conducted Every 15 Days

Officials from the Finance Ministry said export duty rates are revised every 15 days after assessing the average international prices of crude oil, petrol, diesel and aviation fuel.

The previous review came into effect on July 1, and the latest revision will remain applicable for the fortnight beginning July 16 unless modified during the next scheduled assessment.

This dynamic pricing mechanism allows the government to respond quickly to changing global energy market conditions.

Export Levy Introduced Earlier This Year

The Finance Ministry noted that the export levy was originally introduced on March 27 through the Special Additional Excise Duty (SAED) and the Road and Infrastructure Cess (RIC) framework.

The objective was to ensure that domestic fuel requirements remain adequately met, particularly during periods when global prices make exports significantly more profitable for refiners.

The policy gained importance amid geopolitical tensions and supply disruptions in West Asia, which have contributed to fluctuations in international crude oil prices.

By imposing export duties, the government seeks to balance export opportunities for refiners with the country's energy security needs.

No Direct Impact on Retail Fuel Prices

The government has clarified that the revised duties apply only to petroleum products exported from India and do not affect fuel sold in the domestic market.

Since there has been no change in import duties or domestic taxation on petrol and diesel, retail fuel prices at petrol pumps are expected to remain unaffected by the latest revision.

Consumers are therefore unlikely to experience any immediate increase in fuel prices as a result of these export duty changes.

Balancing Energy Security and Trade

Industry observers say the government has increasingly relied on export duty adjustments as a policy tool to manage domestic fuel availability while allowing refiners to remain competitive in global markets.

Higher duties on diesel and aviation fuel may reduce export volumes if international margins narrow, while the lower levy on petrol could provide refiners with greater flexibility in overseas sales where domestic demand remains comparatively lower.

The fortnightly review mechanism is expected to continue enabling policymakers to respond swiftly to changes in global crude prices and evolving geopolitical developments affecting energy markets.

The Union Finance Ministry has officially ratified the 8.25% interest rate on Employees’ Provident Fund deposits for the third consecutive year, paving the way for early credits.

Finance Ministry gives final nod

NEW DELHI: In a major relief for salaried employees across the country, the Union Government has officially ratified the 8.25% interest rate on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26. The move clears the technical decks for the state-run retirement fund manager to begin its annual payout distribution cycle.

According to sources familiar with the development, the interest amount is expected to reflect in the accounts of more than seven crore contributing subscribers later this month.

Third consecutive year of steady returns

The ratification comes after the Central Board of Trustees (CBT), which serves as the apex decision-making body of the Employees’ Provident Fund Organisation (EPFO), recommended maintaining the status quo during its meeting on March 2, 2026.

Headed by Union Labour Minister Mansukh Mandaviya, the board chose to retain the 8.25% interest rate for FY26. This marks the third straight year that the EPF interest rate has remained unchanged, providing a sense of stability for long-term retirement savings amid fluctuating market indicators.

Faster payouts via new digital system

While the interest rate remains steady, subscribers are likely to see their accounts updated much faster this year. Ground-level cues from the labor ministry indicate that the EPFO's recently upgraded digital ecosystem will be fully leveraged for this rollout cycle.

Under this new tech infrastructure, interest will be credited to individual accounts almost immediately once the backend process is triggered. This marks a significant departure from previous years, where structural and technological bottlenecks often delayed the actual reflection of interest in subscriber passbooks by several months.

Trajectory of EPF interest rates

The 8.25% interest rate has become a baseline for the EPFO in recent years. The retirement body had retained the exact same rate for the preceding fiscal, 2024-25. This followed a marginal upward revision from 8.15% in the 2022-23 financial year.

A look at the historical timeline shows that the EPFO had dropped the interest rate to a multi-decade low of 8.10% in FY22, a low point not seen since the late 1970s. Prior to that dip, returns hovered around the 8.5% to 8.8% mark during the mid-to-late 2010s, reflecting a higher interest rate regime across the broader banking sector.

Security for retirement corpus

Because the Government of India acts as the ultimate guarantor for EPF deposits, any rate recommended by the CBT requires a mandatory vetting and concurrence process by the Ministry of Finance before it can be executed.

Initial reports indicate that the file has now been completely processed and sent back to the Ministry of Labour. Local authorities confirmed that backend testing for the mass credit is underway, ensuring the system can handle the concurrent volume of over 70 million active accounts without technical glitches.

What next for subscribers?

Subscribers looking to verify their updated balances will be able to do so via the official EPFO unified portal or through the centralized Umang mobile application once the labor ministry gives the final operational go-ahead. Officials have hinted that the formal notification regarding the commencement of the credit process will be issued over the weekend.

The government's approval of the EPF Interest Rate has brought relief to millions of salaried employees across the country. With the Ministry of Finance ratifying the Employees' Provident Fund Organisation's recommendation, EPFO is now set to begin the annual interest credit process for the financial year 2025-26.

The decision is significant for over seven crore contributing members who rely on EPF savings as a key component of their long-term financial security. According to sources, the interest amount is expected to reflect in subscribers' accounts later this month. The approval also ensures continuity in returns for EPF members, as the interest rate remains unchanged for the third consecutive year.

The Employees' Provident Fund Organisation had recommended retaining the 8.25% interest rate during the meeting of its Central Board of Trustees (CBT) held on March 2, 2026. The board, chaired by Union Labour Minister Mansukh Mandaviya, concluded that the current rate remains sustainable while balancing returns for subscribers and the financial health of the retirement fund.

Interest Credit Process Begins

The EPFO can credit annual interest only after receiving formal approval from the Ministry of Finance. With the ratification now complete, the Ministry of Labour is expected to direct the organisation to initiate the credit process.

Officials familiar with the matter indicate that the recently introduced digital infrastructure within EPFO will enable faster processing and quicker reflection of interest amounts in members' accounts. The upgraded system is designed to reduce delays that subscribers have experienced in previous years.

For salaried employees, the development is particularly important as EPF remains one of India's largest retirement savings schemes. Interest earned on EPF deposits plays a crucial role in wealth accumulation for workers in both the public and private sectors.

EPF Rates Over the Years

The EPF Interest Rate has witnessed several changes over the past decade. The rate stood at 8.25% for both 2023-24 and 2024-25 and has now been retained for 2025-26 as well.

Earlier, EPFO had increased the rate from 8.15% in 2022-23 to 8.25% in 2023-24. Before that, the organisation reduced the rate to 8.10% for 2021-22, which was the lowest return offered in more than four decades.

Historical data shows that subscribers received 8.5% interest in 2020-21 and 2019-20, while the rate was 8.65% in 2018-19. During 2015-16, the return stood at 8.8%, one of the highest rates in recent years.

According to officials, EPFO continues to evaluate market conditions, investment returns and fund performance before recommending annual interest rates. The government, acting as guarantor of EPF deposits, provides final approval before the rate becomes effective.

Financial experts note that despite fluctuations in market-linked investment products, EPF remains a preferred retirement savings instrument because of its relatively stable returns and government-backed structure.

With the approval process completed, EPF Interest Rate credit is expected to begin shortly, providing a financial boost to millions of subscribers and reinforcing confidence in one of India's most widely used social security and retirement savings schemes.

Gross GST revenue for May 2026 rises 3.2% year-on-year but slips sharply from April's record high; imports drive growth as domestic collections dip

Numbers Down From Record High

India's gross GST collections eased to Rs 1.94 lakh crore in May 2026, pulling back from a record Rs 2.42 lakh crore logged in April, though the figure remained 3.2 per cent higher than the Rs 1.88 lakh crore collected in the same month last year. The Finance Ministry released the official data on Monday, June 1.

The moderation was widely anticipated. April's numbers had been buoyed by year-end business activity and tax settlements — a seasonal spike that doesn't carry over into May. Experts noted the softer numbers were largely expected due to the high base effect and seasonal adjustments following the financial year-end surge.

Imports Carry the Month

The real story in May's data was the sharp divergence between import-driven and domestic collections. IGST collection from imports rose 19.1 per cent during May to Rs 59,654 crore, signalling expansion in industrial capacity, the Finance Ministry stated.

Sources said that over 66% rise in lithium-ion battery imports underlines India's deepening integration into the EV and grid storage ecosystem. Coal collections rose by more than 391%, reflecting heightened fuel and coking coal requirements of steel plants, cement kilns, and thermal power generation.

On the domestic side, however, the picture was less encouraging. Gross domestic revenue took a slight dip of 2.6 per cent, falling to Rs 1,34,530 crore in May 2026 from Rs 1,38,102 crore in May 2025.

Net Collections and Refunds

After adjusting refunds, net GST revenues in May rose 3.3 per cent to about Rs 1.67 lakh crore. Total refunds for the month grew 2.6 per cent to Rs 27,281 crore, of which domestic refunds accounted for Rs 17,030 crore.

Adjusting for a Rs 10,000 crore one-time payment made by a telecom operator for spectrum allocation in May 2025, gross GST collection this May would be higher by about 9% and net collection higher by about 10.1%. This is a significant qualifier, as last year's base had been artificially elevated by that one-off entry.

Component-Wise Breakup

GST collections from domestic transactions reached Rs 1.34 lakh crore in May, comprising Rs 37,397 crore in CGST, Rs 45,143 crore in SGST, and Rs 51,990 crore in IGST.

The growth was broad-based across all major goods and services categories, with taxable supplies in the goods sector rising 26.9 per cent and services sector growing 22.2 per cent, government sources said.

State-by-State Picture

State-wise performance varied across the country. Maharashtra remained the largest contributor to domestic collections despite a flat growth rate, generating Rs 29,141 crore compared to Rs 29,236 crore last year. Karnataka registered a marginal increase of one per cent to reach Rs 13,130 crore, while Gujarat also posted a one per cent growth to collect Rs 11,206 crore.

On the other end, Lakshadweep saw its collections plunge 82 per cent to just Rs 1 crore, and Sikkim recorded a 53 per cent drop, with revenue falling to Rs 200 crore.

Cumulative Picture Remains Positive

Despite the month-on-month dip, the broader fiscal trajectory remains intact. Gross GST collection for the first two months of FY2026–27 totals Rs 4.37 lakh crore, up 6.2% from Rs 4.11 lakh crore during the same period in FY2025–26.

"This cumulative year-on-year performance is healthy and in the right direction to achieve the full-year GST revenue target," sources said. The government has budgeted to mop up Rs 10.19 lakh crore from GST in the current fiscal.

India Slashes Import Duty to Zero on 40 Chemicals, Polymers

Three-month exemption on basic customs duty effective April 2; ammonium nitrate cess also removed

Govt Announces Major Relief

The Ministry of Finance (Revenue Department) has issued two extraordinary notifications in the Gazette of India on April 1, 2026, bringing significant relief to the petrochemical industry. Basic customs duty on 40 key chemicals, monomers, and polymers has been reduced to zero. A separate notification has also zeroed the Agriculture Infrastructure and Development Cess on ammonium nitrate. The exemptions take effect from April 2 and will remain in force until June 30.

Scope of the Exemption

The zero-duty list covers a wide range of raw materials used across multiple industries. These include specialty chemicals, plastic inputs, resin intermediates, and polymer compounds. According to the gazette notifications, the move aims to reduce manufacturing costs and stabilise downstream product prices. The exemption is temporary but carries strong signals for policy support to domestic industry.

Who Benefits Directly

Plastic and polymer manufacturers stand to gain the most from lower input costs. Paint, coating, and resin producers will see immediate reduction in production expenses. Fertiliser and pharmaceutical companies will now access cheaper raw materials. The textile, packaging, and automobile sectors are also expected to receive indirect benefits through lower intermediate goods prices.

Official Statement from Industry Body

Yogesh Mehta, President of the Association of Industries Madhya Pradesh, welcomed the decision. “The central government has taken this step in public interest. Many industries in Madhya Pradesh will benefit directly. This is like a lifeline for the sector,” Mehta said. He added that reduced import costs will boost competitiveness of domestic manufacturing units and keep final product prices under control.

Impact on MSME Segment

Small and medium enterprises (MSMEs) are expected to see special relief from the duty cut. Most MSME units depend heavily on imported raw materials due to limited domestic sourcing options. Lower customs duty will ease working capital pressure and allow smaller players to quote more competitive prices. Industry watchers believe this could help revive demand in downstream markets.

Background and Policy Context

The government has periodically used temporary duty exemptions to manage supply-side inflation and support manufacturing. Similar relief was extended to select chemicals during the post-pandemic recovery phase. However, the current three-month window is shorter than previous interventions. Officials indicated the time limit is designed to assess impact before considering any extension.

What Happens Next

The exemptions will remain operational through the first quarter of the fiscal year. Industry bodies are expected to submit feedback to the revenue department by mid-May. Based on utilisation patterns and price trends, the government may either extend the zero-duty regime or replace it with a concessional rate. Meanwhile, importers and manufacturers are advised to align their procurement cycles within the June 30 deadline.