Indian Government Eliminates Export Duty on Petrol, Increases Duty on Diesel and ATF
The Indian government has removed the export duty on petrol while raising duties on diesel and aviation turbine fuel amid rising global oil prices.
New Delhi, October 31 (Daily Kiran) : The Indian government has announced a significant change in its export duties, eliminating the special additional excise duty on petrol. This decision, effective immediately, reduces the export duty from ₹2.5 per liter to zero. However, the government has increased the export duties on diesel and aviation turbine fuel (ATF) by ₹3 and ₹0.50 per liter, respectively.
According to a notification from the Finance Ministry, the new export duty rates now set diesel at ₹11.50 per liter, up from ₹8.5, and ATF at ₹11 per liter, an increase from ₹10.50.
These changes come in response to disruptions in global energy supplies and rising international crude oil prices, which have been exacerbated by ongoing conflicts in the Middle East. The government reviews these export duties every 15 days to ensure they align with current market conditions.
The objective of this policy is to prevent refiners from prioritizing foreign markets over domestic buyers when global prices are more favorable for exports.
In recent weeks, tensions between the U.S. and Iran, alongside the closure of the Strait of Hormuz, have contributed to a spike in crude oil prices. The benchmark Brent crude has surged to $113.10 per barrel, reflecting a 1.55% increase over the past week and a staggering 15.71% rise in the last month. Over three months, prices have climbed nearly 26%.
Before the onset of these conflicts, about 45% of India’s crude oil imports transited through the Strait of Hormuz, a vital maritime route linking the Persian Gulf to global markets. Disruptions in this area have forced India to seek alternative sources for its oil supply.
