In a move to adjust the tax framework related to petroleum products, the central government has increased the export duty on diesel and aviation turbine fuel (ATF). According to the latest notification, the export duty on diesel has been raised to 14 rupees per liter, while the duty on ATF exports is now 12.5 rupees per liter. The export duty on petrol and the existing excise duty on petrol and diesel in the domestic market remain unchanged.
The revised rates took effect on Tuesday, as per the official notification from the Revenue Department. The government regularly reviews these duties based on the conditions in the international energy market. This recent adjustment was made in response to changes in global crude oil and petroleum product prices.
Every fortnight, the special additional excise duty and other related cesses on petroleum products are reviewed. The last change in duty rates was implemented starting June 1. Officials explain that during duty determination, the average international prices of crude oil, diesel, petrol, and ATF are assessed to maintain a balance between the domestic and export markets.
The Petroleum Ministry has assured that there is sufficient stock of petrol, diesel, LPG, and natural gas in the country. It has advised consumers not to worry about fuel availability and urged both citizens and industries to use energy resources judiciously.
In an effort to ease the pressure on retail pumps, Sujata Sharma, Joint Secretary of the ministry, indicated that increased demand in certain areas has resulted in added strain. In May, a significant amount of diesel purchases shifted from wholesale or consumer pumps to retail outlets, affecting the distribution system. Consequently, the government has recommended that large industrial and commercial consumers utilize consumer pumps for their diesel needs.