Government cuts petrol export duty to nil and raises diesel levy
The Finance Ministry has increased export duties on diesel and aviation turbine fuel for the next 15-day period.
The government on Saturday, October 31, reduced the special additional excise duty on petrol exports to nil from Rs 2.5 per litre. At the same time, the levy on diesel exports increased to Rs 11.5 per litre from Rs 8.5 per litre.
According to notifications from the Ministry of Finance, the duty on aviation turbine fuel (ATF) exports also rose to Rs 11 per litre from Rs 10.5 per litre. These revised rates are effective from October 31 for the upcoming fortnight.
The Ministry of Finance stated that there are no changes to the existing excise duty rates for petrol and diesel intended for domestic consumption. The government has been conducting fortnightly reviews of these export levies since March 27.
These reviews are based on the average international prices of crude oil, petrol, diesel, and ATF recorded since the last review. The measures aim to ensure domestic fuel availability by disincentivising exports amid the West Asia crisis.
Sumit Ritolia, Manager for Modelling and Refining at Kpler, noted on Friday that India's diesel exports reached 700 kilo barrels per day in October. He expects these exports to ease to 500-550 kbd during November and December as domestic demand peaks.