Centre revises fuel export duties, domestic prices stay stable

Global energy markets continue to influence policy decisions as governments work to safeguard domestic fuel supplies.

In this context, the Centre has revised export duties on key petroleum products, including petrol, diesel and aviation turbine fuel (ATF), with the changes taking effect from June 1.

The latest adjustment follows the government’s regular fortnightly review process, which evaluates international crude oil price trends and domestic supply requirements.

As a result, export duties have been recalibrated to align with changing market conditions.

Under the revised structure, petrol exports will attract a duty of ₹1.5 per litre. Meanwhile, diesel exports will be subject to a levy of ₹13.5 per litre, while ATF exports will face a duty of ₹9.5 per litre.

Officials stated that these changes are based on recent movements in global crude prices and ongoing assessments of domestic fuel availability.

The export duty framework was introduced in March to help maintain adequate supplies within the country during periods of uncertainty in international energy markets.

Since then, the government has reviewed the rates every two weeks to respond quickly to fluctuations in oil prices and supply conditions.

Importantly, the latest revision affects only exports. The government has clarified that excise duties applicable to petrol and diesel sold in the domestic market remain unchanged.

Therefore, consumers will not see any immediate impact on fuel prices at retail outlets.

The current system operates through a Special Additional Excise Duty (SAED), which applies to exports.

However, the Regular Excise Component (RIC) for domestic fuel consumption continues without any modification. This distinction allows authorities to manage exports while protecting local supply and market stability.

The latest move also follows a series of earlier adjustments. In May, export duty on petrol was increased to ₹3 per litre from nil. At the same time, duties on diesel and ATF were reduced to ₹16.5 and ₹16 per litre, respectively.

Consequently, the new rates represent another step in the government’s ongoing effort to fine-tune the policy.

Despite these changes, retail fuel prices remain stable across major cities. Petrol currently costs ₹102.12 per litre in New Delhi, ₹113.47 per litre in Kolkata and ₹111.21 per litre in Mumbai.

Going forward, authorities will continue reviewing export duties every fortnight.

The objective remains clear: balancing domestic fuel availability while adapting to developments in global energy markets.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on April 05, 2017

Image Reference: https://pxhere.com/en/photo/1365609