Key Takeaways:
- Diesel export duty increased to ₹14 per litre from ₹13.5
- ATF export duty raised to ₹12.5 per litre from ₹9.5
- Petrol export duty unchanged at ₹1.5 per litre
India Diesel has increased export duties on diesel and aviation turbine fuel, effective June 16, while keeping petrol duty unchanged, as global energy prices continue to influence domestic fuel supply management.
Revised Export Duties Take Effect From June 16
According to the latest government notification, the export duty on India Diesel has been raised to ₹14 per litre from the previous ₹13.5 per litre. The duty on aviation turbine fuel has seen a sharper increase, rising to ₹12.5 per litre from ₹9.5 per litre.
The export duty on petrol remains unchanged at ₹1.5 per litre. These revised rates will remain applicable for a two-week period starting June 16, as part of the regular review mechanism followed by the authorities.
The duties are imposed under the Special Additional Excise Duty framework, which is reviewed every fortnight. The previous revision, effective June 1, had set diesel duty at ₹13.5 per litre, ATF at ₹9.5 per litre, and petrol at ₹1.5 per litre.
No Road and Infrastructure Cess has been applied to any of the three fuels under the current revision. The adjustments are based on average global prices of crude oil and refined petroleum products during the preceding review period.
Impact On Refining Economics And Domestic Supply
The increase in export duties reflects efforts to manage domestic fuel availability amid fluctuations in global energy markets. Higher international prices can encourage refiners to increase exports, which may affect local supply levels.
By raising export levies, the cost of overseas shipments increases, which can influence refiners to prioritise domestic markets. This is particularly relevant for diesel and aviation turbine fuel, which form a significant portion of India’s refined product exports.
India Diesel Refinery is one of Asia’s major refining hubs and exports considerable volumes of diesel and aviation fuel to global markets. Changes in export duties directly affect refining margins and export competitiveness, especially during periods of price volatility.
The Special Additional Excise Duty was introduced on March 27 to address rising uncertainties in global fuel markets and ensure stable domestic availability. Since then, the government has adjusted rates in line with movements in international energy prices.
Global energy markets have remained sensitive to supply conditions and trade flows, leading to periodic price fluctuations. These movements are factored into the fortnightly review of export duties to align domestic policy with external conditions.
The latest revision highlights ongoing adjustments in response to market dynamics. It underscores the importance of balancing export activity with domestic supply needs, while maintaining stability in fuel availability across the country.
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