The Central Government has announced changes to export duties on petrol, diesel and aviation turbine fuel (ATF). According to a notification issued by the Finance Ministry on Saturday, the export duty on petrol has been completely removed, while the special additional excise duty on diesel exports has been increased by ₹3 per litre.
The government has also raised the export duty on aviation turbine fuel by 50 paise per litre. These revised rates will affect companies exporting petroleum products from India.
The changes come as part of the government’s adjustments to fuel export taxation, with different duty rates now applying to petrol, diesel and ATF.
New Export Duty Rates for Petrol, Diesel and ATF
Under the revised policy, petrol exports will no longer attract the earlier duty of ₹2.50 per litre. This means exporters can now sell petrol overseas without paying this particular export tax.
Diesel exports, however, will become more expensive. The special additional excise duty has been increased from ₹8.50 to ₹11.50 per litre, representing a rise of ₹3.
The export duty on aviation turbine fuel has also been revised. Companies exporting ATF will now have to pay ₹11 per litre instead of the previous ₹10.50.
These are the revised rates announced by the Finance Ministry:
| Fuel Type | Previous Duty | New Duty |
|---|---|---|
| Petrol | ₹2.50 per litre | Nil |
| Diesel | ₹8.50 per litre | ₹11.50 per litre |
| Aviation Turbine Fuel (ATF) | ₹10.50 per litre | ₹11 per litre |
Will the New Export Duty Affect Petrol and Diesel Prices in India?
The latest changes are related to the export of petroleum products and are not expected to directly increase domestic petrol and diesel prices.
Indian consumers are therefore not expected to face an immediate price hike because of this export duty revision. The changes will primarily affect companies involved in sending petrol, diesel and aviation fuel to international markets.
While petrol exporters will benefit from the removal of the duty, companies exporting diesel and ATF will face higher tax payments under the revised rates.
Why Does the Government Impose Export Duty on Fuel?
The government introduced export duties on petrol and diesel in March amid global uncertainty caused by the war and concerns over energy supplies.
The purpose of these measures was to help maintain adequate fuel availability in the domestic market during a period of international disruption.
Before the conflict, India depended significantly on crude oil supplies transported through the Strait of Hormuz. Disruptions along this important route created concerns about the country’s energy supply chain.
India now imports crude oil from several other countries. The country also has major refining companies with substantial processing capacity, allowing it to produce petroleum products for both domestic consumption and international markets.
Reliance Industries is among the companies with significant refining capacity in India. Its operations are part of the country’s wider petroleum refining and export industry.
The latest duty revision changes the tax treatment of different petroleum products, removing the export duty on petrol while increasing the charges applicable to diesel and aviation turbine fuel.
Disclaimer: This article is intended for general informational purposes and is based on the Finance Ministry notification details provided. Export duty rates and related government policies may change through subsequent official notifications. Readers and businesses should refer to the latest government orders for confirmed rates and applicable provisions.