The Indian government has revised the duty structure on petroleum products, increasing the export duty on diesel and aviation turbine fuel (ATF). According to the notification issued by the government, the export duty on diesel is now set at ₹14 per liter, while ATF will attract a duty of ₹12.5 per liter. However, there has been no change in the export duty on petrol or the existing excise duty on petrol and diesel in the domestic market.
The revised rates, which took effect on Tuesday, were announced through an official notification by the Revenue Department. The government periodically reviews these duties based on the conditions in the international energy market. The recent amendment has been made in light of changes in crude oil and petroleum product prices globally.
The government reviews the special additional excise duty and associated cesses on petroleum products every 15 days to maintain a balance between the domestic and export markets. The last revision occurred on June 1. Officials explain that during the determination of these duties, the average prices of crude oil, diesel, petrol, and ATF are assessed at the international level.
To reassure the public, the Petroleum Ministry has confirmed that the country has an adequate stock of petrol, diesel, LPG, and natural gas. The ministry emphasizes that consumers need not worry about fuel availability. It has also appealed to both citizens and industries to use energy resources judiciously.
In response to increased demand at retail petrol pumps in certain areas, partly due to a shift in diesel consumption from wholesale or consumer pumps to retail outlets, the government has temporarily limited diesel sales at retail outlets. From June 11, individuals can purchase a maximum of 200 liters of diesel per day from retail pumps. This temporary measure aims to ensure uninterrupted fuel availability for regular consumers and is expected to remain in effect for up to 90 days. Government officials emphasize that refineries are operating normally, and there is no shortage of crude oil, thus alleviating concerns about fuel supply.