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Govt Cuts Export Duties on Diesel and ATF, Petrol Duty Unchanged

The Indian government has reduced export duties on diesel and aviation turbine fuel (ATF) for the fortnight starting May 1. Diesel export duty has been slashed from Rs 55.5 to Rs 23 per litre, while ATF duty dropped from Rs 42 to Rs 33 per litre. Petrol export duty remains nil, and excise duty on domestic fuel is unchanged. Additionally, a new notification allows ATF to be blended with synthetic fuels to align with evolving industry standards.

Key Points: Govt Lowers Diesel, ATF Export Duties; Petrol Steady

  • Export duty on diesel cut from Rs 55.5 to Rs 23 per litre
  • ATF export duty reduced from Rs 42 to Rs 33 per litre
  • Petrol export duty remains nil
  • Excise duty on domestic petrol and diesel unchanged
  • ATF can now be blended with synthetic fuels under new rules
2 min read

Govt lowers export duties on diesel, ATF; keeps excise duty on petrol unchanged

India reduces export duties on diesel to Rs 23/litre and ATF to Rs 33/litre from May 1. Petrol export duty remains nil. Excise duty on domestic fuel unchanged.

"The rate of duty on exports of diesel will be Rs 23 per litre - Finance Ministry"

New Delhi, May 1

The Centre has revised export duties on diesel and aviation turbine fuel for the next fortnight beginning May 1, while petrol export duty continues to remain nil, the Finance Ministry said on Thursday.

The rate of duty on exports of diesel will be Rs 23 per litre (SAED - Rs. 23; RIC - Nil). Further, the rate of duty on exports of ATF will be Rs 33 per litre (SAED only). The rate of duty on exports of Petrol continues to remain nil.

Special Additional Excise Duty (SAED) is a flexible tax imposed by the government on select products, mainly domestic crude oil and exported petroleum fuels such as petrol, diesel, and ATF.

Finance Ministry also said there is no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption.

In April, the Centre had increased export duties on petroleum products, raising the levy on high-speed diesel to Rs 55.5 per litre and on aviation turbine fuel (ATF) to Rs 42 per litre.

Meanwhile, the Petroleum and Natural Gas Ministry issued a notification on April 22 to align fuel definitions and regulatory provisions with evolving industry standards.

Aviation Turbine Fuel (ATF) can now be blended with synthetic fuels under new rules. The move is aimed at bringing clarity to fuel standards amid growing use of alternative and blended aviation fuels.

A gazette notification issued by the Ministry of Petroleum and Natural Gas (MoPNG) details the amendment to the Aviation Turbine Fuel (Regulation of Marketing) Order, 2001. Under the new G.S.R. 301(E) notification, the definition of aviation turbine fuel has been expanded.

It is now identified as a complex mixture of hydrocarbons conforming to IS 1571 specifications or its blend with synthesised hydrocarbons as specified in IS 17081.

- ANI

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Reader Comments

S
Sarah B
I work in aviation logistics, and this ATF duty cut is a welcome step for the industry. Blending synthetic fuels is the future, and the government is aligning with global standards. But why is petrol excise duty still so high? It's like a hidden tax on every commuter.
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Priya S
Bharat needs to reduce its dependence on imported crude. While these duty tweaks help oil companies and aviation, the real relief for farmers and middle-class families in transport costs is missing. At least the ATF blending rule is progressive. 🇮🇳✈️
R
Ravi K
Honestly, reducing export duties on diesel by half (from Rs 55.5 to Rs 23) is a big relief for our refineries. But I wish the government would also bring down the excise on domestic petrol and diesel. Inflation is already high, and transport costs hit everything we buy.
J
James A
Interesting decision. Lowering diesel export duty from 55.5 to 23 rupees per litre should boost refinery margins and exports. But keeping excise duty on domestic petrol unchanged means the consumer still pays high prices at the pump. Hopefully the SAED system brings more stability.
A
Arun Y
The blending of synthetic fuels with ATF is a forward-looking step. India needs to embrace sustainable aviation fuel. But why is the domestic consumer always left behind? Lower excise on petrol and diesel should be a priority for Diwali at least. 😊✈️

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