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India Hikes Diesel, ATF Export Duties to Curb Overseas Sales, Ensure Supply

The Indian government has sharply increased export duties on key petroleum products with immediate effect. The levy on high-speed diesel has been raised to Rs 55.5 per litre, while the duty on aviation turbine fuel is now Rs 42 per litre. Officials stated the move is aimed at ensuring domestic supply and preventing exporters from taking undue advantage of global price differences. The export duty on petrol, however, remains unchanged at zero.

Key Points: India Raises Export Duty on Diesel, ATF; Petrol Unchanged

  • Diesel export duty raised to Rs 55.5/litre
  • ATF duty increased to Rs 42/litre
  • Petrol export levy unchanged at zero
  • Aimed at ensuring domestic supply
  • Takes effect immediately
2 min read

Government hikes export duty on diesel to Rs 55.5/litre, ATF to Rs 42/litre; petrol levy unchanged

Government increases export duty on diesel to Rs 55.5/litre and ATF to Rs 42/litre to ensure domestic supply. Petrol export levy remains zero.

"circumstances exist which render it necessary to take immediate action - Ministry of Finance Notification"

New Delhi, April 11

The Centre has increased export duties on petroleum products, raising the levy on high-speed diesel to Rs 55.5 per litre and on aviation turbine fuel to Rs 42 per litre, according to a gazette notification issued by the Ministry of Finance.

The move, which comes into force "with immediate effect", is aimed ensuring domestic supply amid evolving global energy dynamics and not allowing exporters to take undue advantage due to price differences, officials said.

"Satisfied that the Special Additional Excise Duty leviable... on High speed diesel oil, should be increased and that circumstances exist which render it necessary to take immediate action," the notification said.

Changes are being made in the Eighth Schedule of the Finance Act, 2002.

"For the entry... 'Rs. 24 per litre' shall be substituted," the notification said, revising the duty structure applicable to export of diesel.

The government also raised the Road and Infrastructure Cess on high speed diesel, stating that it was "satisfied that the Road and Infrastructure Cess... on High speed diesel oil, should be increased," and that "the entry 'Rs. 36 per litre' shall be substituted."

The revised structure effectively pushes the total export duty on high speed diesel to Rs 55.5 per litre, up from Rs 21.5 per litre earlier.

Similarly, the duty on aviation turbine fuel (ATF) has been increased to Rs 42 per litre from Rs 29.5 per litre, as per the amended notification, which states that "for the entry... the entry 'Rs. 42 per litre' shall be substituted."

At the same time, export duty on petrol remains unchanged at zero.

Officials said the notifications were issued under powers granted by the Central Excise Act, 1944 and relevant provisions of the Finance Acts, and emphasised that the changes were necessary in the "public interest."

All five notifications noted that "circumstances exist which render it necessary to take immediate action".

- ANI

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Reader Comments

P
Priyanka N
Good move to curb undue profiteering by exporters. But will this translate to lower prices for us at the pump? That's the real question. Hope the government ensures the benefit is passed on to the common man and not just absorbed by the oil companies.
A
Aman W
While the intent to secure domestic supply is good, such sudden policy changes can hurt investor confidence. The industry needs predictability. A more gradual approach with clearer communication would have been better. Still, hoping it stabilizes local diesel prices.
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Sarah B
Interesting to see petrol duty unchanged. Does this mean the government is confident about petrol supply, or is there a different strategy at play? The ATF hike is huge - hope it doesn't lead to a massive spike in air ticket prices just as travel is picking up.
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Vikram M
This will directly impact logistics and transportation costs. Diesel is the backbone of our goods movement. If domestic supply is assured and prices remain stable, it's a win. But if it leads to shortages or black marketing, it will backfire. Fingers crossed! 🚛
K
Kriti O
"Circumstances exist which render it necessary to take immediate action" – this phrase is used too often. While I support the measure, the government should be more transparent about what these specific circumstances are. We deserve to know the full picture behind such a sharp hike.

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