Govt cuts export duties on petrol, diesel and aviation turbine fuel amid West Asia crisis

The central government has revised the export duties on petrol, diesel and aviation turbine fuel (ATF) for the two weeks starting from June 1, according to a notification issued by the Ministry of Finance on Saturday.

The notification highlighted that exports of petrol will be subject to a tariff of Rs 1.5 per litre, while exports of diesel will be subject to a duty of Rs 13.5 per litre. Aviation turbine fuel is subject to an export duty of Rs 9.5 per litre.

Excise duty rates on petrol and diesel sold in the domestic market, however, have remained unchanged by the centre.

The notification states that the revised rates are based on the average global prices of crude oil, petrol, diesel and ATF that have been in effect since the last review.

In light of the West Asia crisis, the export duties were implemented on March 27, to ensure domestic access to petroleum supplies by deterring exports. The most recent revision was implemented on May 16.

Earlier, on May 16, the government had modified petroleum product export taxes, lowering the levy on diesel to Rs 16.5 per litre and adding a special additional excise duty (SAED) of Rs 3 per litre on petrol exports.

As per the Finance Ministry’s announcement, diesel exports will now be valued at Rs 16.5 per litre, while petrol exports will now be valued at Rs 3 per litre. It added that the road and infrastructure tax on exports of petrol and diesel has been slashed to zero. The rates of domestic petrol taxes did not change.

Diesel export taxes had previously undergone several revisions.

On March 26, it was initially fixed at Rs 21.50 per litre; on April 11, it was increased to Rs 55.5 per litre. It was then lowered to Rs 33 a litre, and it is currently Rs 16 per litre.

In light of the volatile global oil markets sue to West Asia crisis, the windfall tax structure was implemented to ensure sufficient domestic fuel availability and reduce exports.