Govt hikes export duty on diesel to Rs 14 per litre, ATF to Rs 12.5 per litre

The Central government has increased the export duty on diesel and aviation turbine fuel ATF while keeping the levy on petrol exports unchanged according to a notification issued by the Ministry of FinanceThe revised rates which come into effect from June 17 are part of the governments fortnightly review mechanism aimed at ensuring adequate domestic availability of petroleum products while responding to fluctuations in global energy marketsUnder the latest revision the Special Additional Excise Duty SAED on diesel exports has been increased to Rs 14 per litre from Rs 135 per litre The export duty on ATF has been raised more significantly to Rs 125 per litre from Rs 95 per litreHowever the export levy on petrol remains unchanged at Rs 15 per litreNo change in domestic fuel dutiesThe government has clarified that there is no change in the excise duty structure applicable to petrol and diesel sold for domestic consumptionAs a result consumers are unlikely to see any immediate impact on retail fuel prices arising directly from the latest revision in export dutiesOfficials said the changes apply only to exports and are intended to balance domestic fuel availability with prevailing international market conditionsExport duties reviewed every fortnightThe export levies are reviewed every two weeks based on international prices of crude oil and refined petroleum productsThe last revision was carried out on June 1 when the government fixed the export duty at Rs 15 per litre on petrol Rs 135 per litre on diesel and Rs 95 per litre on aviation turbine fuelAccording to officials the latest increase reflects changes in global fuel price trends and market conditions observed since the previous reviewWindfall tax introduced amid West Asia tensionsThe export duties on petrol diesel and ATF were introduced earlier this year as geopolitical tensions in West Asia triggered volatility in global energy marketsThe measures were aimed at discouraging excessive exports and ensuring sufficient domestic availability of petroleum products at a time when international crude oil prices were witnessing sharp fluctuationsThe government has maintained that the levy serves as a tool to protect domestic consumers from potential supply disruptions arising from external geopolitical developmentsEarlier revisions saw sharper increasesThe latest hike follows several revisions in recent monthsIn April the government substantially increased duties on petroleum products including highspeed diesel At that time the export duty on diesel was raised sharply from Rs 215 per litre to Rs 555 per litreThe Centre had also increased the Road and Infrastructure Cess RIC on diesel under provisions of the Finance Act 2018 as part of broader measures affecting the petroleum sectorSince then duty rates have been adjusted periodically in line with changes in global crude oil and fuel pricesGovernment assures adequate fuel availabilityMeanwhile the Petroleum Ministry has assured consumers that there is no shortage of petrol diesel liquefied petroleum gas LPG or natural gas in the countryAddressing a press briefing Petroleum Ministry officials said fuel supplies remain stable and refineries are operating at optimal capacity They emphasised that adequate crude oil inventories are being maintained to meet domestic demandThe ministry urged consumers and industries to use energy responsibly and avoid unnecessary stockpilingTemporary measures introduced to ease pressure on retail outletsOfficials explained that recent supply pressures at some retail fuel stations were linked to changes in diesel procurement patterns rather than any shortage of fuelAccording to the ministry around 42 crore litres of diesel that were previously supplied through bulk consumer channels shifted to retail outlets during May increasing demand at public fuel stationsTo prevent inconvenience to individual consumers the government recently introduced temporary measures restricting retail diesel purchases to 200 litres per person per day Industrial and commercial users have been advised to source diesel through their designated consumer pumpsThe Petroleum Ministry said these measures are temporary and are expected to remain in place for approximately 90 days Officials reiterated that fuel availability remains adequate across the country and that the latest export duty revision is aimed at safeguarding domestic supply while responding to evolving global market conditionsWith inputs from Agencies