Centre raises export duties on diesel and jet fuel
What's the story
The Indian government has hiked the export duties on diesel and Aviation Turbine Fuel (ATF). The move comes as part of a fortnightly review process, with the new rates effective from Tuesday. The export duty on diesel has been increased to ₹14 per liter from ₹13.5 per liter while that on ATF exports has been raised to ₹12.5 per liter from ₹9.5 per liter earlier.
Duty stability
Petrol export duty remains unchanged at ₹1.5 per liter
Despite the hike in diesel and ATF export duties, the government has kept the petrol export duty unchanged at ₹1.5 per liter. This decision is part of an ongoing effort by the Centre to ensure sufficient domestic supply of petroleum products amid the West Asia crisis. The government had first imposed these export levies on March 27 to curb overseas shipments and prioritize domestic supplies.
Duty review
CBIC conducts fortnightly reviews of export duties
The Central Board of Indirect Taxes and Customs (CBIC) has been conducting fortnightly reviews of these export duties. The reviews take into account the prevailing international oil prices and market trends. The last review was conducted on June 1, when the export duty on diesel was fixed at ₹13.5 per liter, ATF at ₹9.5 per liter, and petrol at ₹1.5 per liter.
Supply protection
Government prohibits large consumers from purchasing diesel at retail outlets
Separately, the government has also barred large industrial and commercial consumers from buying diesel from retail fuel outlets. This move is aimed at protecting supplies and preventing disruptions in the domestic market amid heightened geopolitical uncertainties. The latest hike in export duties is expected to further discourage exports of refined petroleum products and strengthen fuel availability within India as authorities continue to monitor developments in global energy markets.