Govt hikes export duty on diesel to Rs 14/litre, ATF to Rs 12.5/litre; no change in fuel for domestic consumption
New Delhi, June 16
The Central government on Monday hiked the export duties levied on diesel by Rs 14 per litre and Aviation Turbine Fuel by Rs 12.5 per litre, with no change in the rates of duty on petrol.
According to the official Gazette notification issued by the Department of Revenue, the rate of duty will be Rs 14 per litre on exports of diesel and Rs 12.5 per litre on exports of ATF. There is no change in the rate of duty on exports of petrol or in the existing excise duty rates on petrol and diesel cleared for domestic consumption.
The revised rates will come into effect on Tuesday.
Export levies, Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC), on the exports of petrol, diesel and aviation turbine fuel (ATF) were introduced with effect from March 27 to ensure domestic availability of petroleum products by disincentivising exports in the backdrop of the West Asia crisis.
The rates are being revised on a fortnightly basis, and the last such revision was undertaken with effect from June 1. The rates are prescribed based on the average international prices of crude oil, petrol, diesel and ATF prevailing during the period since the last review.
Meanwhile, the Petroleum Ministry on Monday has assured there is sufficient supply of petrol, diesel, LPG and natural gas in the country and urged citizens and industry to use energy responsibly.
Joint Secretary Sujata Sharma, speaking at an Inter-Ministerial press briefing, appealed for energy conservation and asked bulk industrial and commercial consumers to purchase diesel from their consumer pumps to reduce pressure on retail outlets.
The appeal comes as the government put a temporary order in place to ease congestion at retail pumps. Sharma explained that the supply of petrol, diesel and LPG remains stable and refineries are operating at optimum capacity, with crude inventories maintained.
The strain stems from a shift in offtake: about 42 crore litres of diesel that earlier moved through bulk or consumer pumps shifted to retail outlets in May, creating supply issues at some locations.
To protect common consumers, the government issued a budget notification on June 11, capping retail diesel sales at 200 litres per person per day. Industrial and commercial users have been directed to source from their own consumer pumps.
Sharma clarified this is a temporary order for about 90 days and has been brought in to save the common consumer from inconvenience, stressing there is no shortage of petrol and diesel.
— ANI
Reader Comments
But why only diesel and ATF? Petrol exports remain unchanged? Feels like they're selectively taxing. And this fortnightly revision system is confusing - how can businesses plan? Also, 'sufficient supply' but then they cap retail sales? Contradictory messaging from the ministry. 😕
Finally some relief for us common people! Last month I saw tankers lining up at retail pumps while industrial users were buying in bulk. This 200-liter limit is fair. But Rs 14/litre export duty seems steep - hope it doesn't lead to reduced production or job losses in refineries. Balance needed!
Interesting approach. In Australia, we have similar export controls during supply crunches. But the fortnightly revision system seems inefficient - creates uncertainty for traders. Also, 42 crore liters shifting to retail in one month is huge! That explains the queues. Hope this is truly temporary (90 days as mentioned).
Smart policy! We can't let Indian fuel be exported when our own people are struggling. The ATF export duty makes sense too - airlines can afford it. But I worry about diesel prices for farmers and transporters - they'll still bear the brunt indirectly. Hope the government monitors this impact closely. 🚜
I appreciate the intent but execution is messy. Why cap retail sales at 200 liters per person per day? What if I'm a small business owner needing more? And the joint secretary's appeal for 'energy conservation' sounds vague. We need clear guidelines, not just appeals. Also, why no change in petrol duty? Inconsistent policy.