Centre slashes export duties on diesel, aviation turbine fuel
What's the story
The Indian government has announced a reduction in export duties on diesel and aviation turbine fuel (ATF). The new rates are ₹23 per liter for diesel and ₹33 per liter for ATF. This is a major cut from the previous rates of ₹55.5 per liter for diesel and ₹42 per liter for ATF. However, there is no change in the domestic tax rates on petrol and diesel or on petrol exports which remain duty-free.
Duty adjustments
Government revises export duties every fortnight
The government has been revising export duties every fortnight, depending on global price trends, to ensure adequate domestic availability. This move comes as India grapples with rising import costs due to a spike in crude oil prices. The country is the world's third-largest oil importer and consumer and has been hit hard by the recent surge in global crude prices amid geopolitical tensions in West Asia.
Price stability
Prices of petrol, diesel in India unchanged for 4 years
Despite the global volatility, retail prices of petrol and diesel in India have remained unchanged for four years. This is part of an effort to shield consumers from rising costs. The government has also capped monthly hikes in ATF prices for domestic airlines at 25% from April. ATF accounts for nearly 40% of an airline's operating costs, making this move critical to managing airfares amid rising fuel costs.