The Central government has announced an increase in export duties on diesel and Aviation Turbine Fuel (ATF), effective Tuesday, while keeping petrol duties unchanged. According to an official Gazette notification from the Department of Revenue, the Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC) on diesel exports have been raised by Rs 14 per litre, bringing the total duty to Rs 14 per litre. For ATF, the export duty has been increased by Rs 12.5 per litre, reaching Rs 12.5 per litre. There is no change in the duty on petrol exports or the excise duty rates for petrol and diesel sold domestically.
Background of Export Levies
These export levies were first introduced on March 27 to discourage exports and ensure adequate domestic supply of petroleum products, particularly in light of the West Asia crisis. The rates are reviewed every two weeks based on average international prices of crude oil, petrol, diesel, and ATF. The last revision took effect on June 1.
Government Assurances on Fuel Supply
On Monday, the Petroleum Ministry assured the public that there is sufficient supply of petrol, diesel, LPG, and natural gas across the country. Joint Secretary Sujata Sharma, speaking at an Inter-Ministerial press briefing, urged citizens and industries to use energy responsibly. She appealed for energy conservation and asked bulk industrial and commercial consumers to purchase diesel from their own consumer pumps to reduce pressure on retail outlets.
The appeal comes after the government implemented a temporary order to ease congestion at retail pumps. Sharma explained that refineries are operating at full capacity and crude inventories are well-maintained. However, a shift in offtake has caused strain: approximately 42 crore litres of diesel that previously moved through bulk or consumer pumps shifted to retail outlets in May, leading to supply issues at some locations.
Temporary Measures for Consumers
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 fuel from their own consumer pumps. Sharma clarified that this is a temporary order for about 90 days, aimed at preventing inconvenience to the general public, and emphasized that there is no shortage of petrol or diesel.
The revised export duties and associated measures reflect the government's ongoing efforts to balance domestic fuel availability with international market dynamics, ensuring stability in the energy sector.
