The central government has revised the duty structure on petroleum products by increasing the export tax on diesel and aviation turbine fuel (ATF). According to the notification issued by the government, a duty of ₹14 per liter on diesel exports and ₹12.5 per liter on ATF exports will now be levied. However, there have been no changes to the export tax on petrol or the existing excise duty on petrol and diesel in the domestic market.
This adjustment, which took effect on Tuesday, comes after a review of global market conditions for crude oil and petroleum products. The Revenue Department’s official notification states that the revised rates have been implemented considering recent changes in international prices. The government periodically reviews these levies, assessing international energy market scenarios to ensure they reflect current conditions. The last adjustment to these rates was enacted on June 1.
Every fortnight, the government evaluates the special additional excise duty and other related cesses imposed on petroleum products. Officials highlight that during the determination of these duties, the average international prices of crude oil, diesel, petrol, and ATF are analyzed to maintain a balance between the domestic and export markets. This approach is meant to ensure both market segments are adequately catered to.
The Petroleum Ministry has assured that there is a sufficient stock of petrol, diesel, LPG, and natural gas within the country. The ministry has emphasized that consumers need not worry about fuel availability and has urged both citizens and industries to use energy resources judiciously. Amid increased demand leading to pressure on some retail outlets, the government has advised large industrial and commercial consumers to use consumer pumps for their requirements.
To ensure uninterrupted fuel availability for regular consumers, the government has temporarily capped retail diesel sales. Under the directive issued on June 11, individuals can purchase a maximum of 200 liters of diesel per day from retail pumps. This measure is expected to last for approximately 90 days, aiming to stabilize the fuel distribution system and prevent inconvenience to the general public. Government officials assure that refineries are operating normally, and the supply of crude oil remains sufficient, minimizing any risk of fuel shortages.