Modi government lowers excise duty on petrol, diesel, ATF exports
What's the story
The Indian government has announced a reduction in the Special Additional Excise Duty (SAED) on exports of diesel, petrol and aviation turbine fuel (ATF). The revised rates will come into effect from June 1. The duty on petrol exports has been slashed to ₹1.5 per liter from ₹3; for diesel, it has been reduced to ₹13.5 per liter from ₹16.5; and for ATF, the new rate is ₹9.5 per liter as compared to the earlier rate of ₹16.
Domestic impact
No change in duty rates for domestic consumption
The government has clarified that there will be no change in the existing excise duty rates on petrol as well as diesel meant for domestic consumption. This comes after the last revision was done on March 16. Export levies on these fuels were first introduced on March 27 to ensure their availability in the country amid the ongoing West Asia crisis.
Revision frequency
Export duties on fuels revised every 2 weeks
The export duties on petrol, diesel and ATF are revised every two weeks. The rates are determined based on the average international prices of crude oil, petrol, diesel and ATF since the last review. The latest revision was done on March 16. This system ensures that the export duties remain in line with global market trends and fluctuations in petroleum product prices.
Price hike
Petrol prices cross ₹100 mark in Delhi
The duty revision comes after a series of petrol and diesel price hikes in India. Petrol prices in Delhi have crossed the ₹100 mark after rising by ₹2.61 to ₹102.12 per liter, while diesel prices have gone up by ₹2.71 to ₹95.20 per liter. The price hikes were witnessed across major cities such as Kolkata, Mumbai and Chennai too due to continued volatility in global crude markets and geopolitical tensions in West Asia.