Government Hikes Diesel, ATF Export Duties; Petrol Duty Unchanged

The government increased the export duty on diesel and aviation turbine fuel (ATF) in its latest fortnightly review, while keeping the levy on petrol exports unchanged, according to a notification. For the fortnight commencing June 16, the export duty on diesel has been raised to ₹14 per litre from ₹13.5 per litre, while the levy on ATF exports has been increased to ₹12.5 per litre from ₹9.5 per litre. The export duty on petrol remains unchanged at ₹1.5 per litre.

The government clarified that excise duty rates on petrol and diesel meant for domestic consumption will remain unchanged. The revised duties come amid continuing efforts by the Centre to ensure adequate domestic availability of petroleum products in the wake of the ongoing West Asia

crisis. The government had introduced export levies on petroleum products from March 27 to discourage overseas shipments and prioritise supplies for the domestic market.

The Central Board of Indirect Taxes and Customs (CBIC) has since been conducting fortnightly reviews of the export duties, taking into account prevailing international oil prices and market trends.

In the previous review for the fortnight beginning June 1, the government had fixed the export levy on diesel at ₹13.5 per litre, ATF at ₹9.5 per litre and petrol at ₹1.5 per litre.

Separately, the government has also barred industrial and commercial consumers from purchasing petrol and diesel from retail fuel outlets, a move aimed at safeguarding supplies and preventing disruptions in the domestic market amid heightened geopolitical uncertainties.

The latest increase in export duties is expected to further discourage exports of refined petroleum products and strengthen fuel availability within the country as authorities continue to monitor developments in global energy markets.