The central government of India has revised the duty structure on petroleum products by 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 for ATF, it has been increased to ₹12.5 per liter. However, there is 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 came into effect on Tuesday, were announced by the Revenue Department through an official notification. The government regularly reviews these duties, taking into account the conditions in the international energy market. The recent adjustments were made considering changes in global crude oil and petroleum product prices.
The review of special additional excise duty and other related cesses on petroleum products is conducted every 15 days. The last modification of these duty rates was implemented on June 1. According to officials, the determination of duty rates involves evaluating the average international prices of crude oil, diesel, petrol, and ATF to maintain a balance between the domestic and export markets.
The Ministry of Petroleum has assured that there is ample stock of petrol, diesel, LPG, and natural gas in the country, emphasizing that consumers need not worry about fuel availability. The government has also urged both citizens and industries to use energy resources judiciously. Recently, in an inter-ministerial press conference, Sujata Sharma, Joint Secretary of the Ministry, highlighted that some regions have experienced increased demand at retail petrol pumps, causing additional pressure on the distribution system.
Due to a shift in diesel consumption patterns, with approximately 420 million liters being redirected to retail outlets, the government has advised large industrial and commercial consumers to utilize consumer pumps for their needs. To ensure uninterrupted fuel availability for the general public, the government has temporarily set a cap on diesel sales at retail outlets, limiting individuals to a maximum purchase of 200 liters per day. This measure, introduced on June 11, is intended to last for about 90 days to balance the fuel distribution system and prevent potential inconvenience to consumers. Government officials have reassured that refineries are operating normally, and there is sufficient availability of crude oil, eliminating any concerns over fuel supply shortages.