Centre scraps Rs 2.5/litre petrol export duty, hikes diesel levy to Rs 11.5 - The Times of India
The Indian government has officially removed the special additional excise duty of Rs 2.5 per litre on petrol exports, providing relief to fuel refiners. Simultaneously, authorities increased the tax on high-speed diesel shipments to Rs 11.5 per litre and adjusted aviation turbine fuel levies to Rs 11 per litre. These adjustments took effect immediately upon publication in the official Gazette. Originally introduced to manage domestic shortages and stabilize local supplies during global energy market volatility tied to the West Asia conflict, these export taxes undergo fortnightly reviews. Officials closely monitor shifts in international crude prices and domestic fuel availability before modifying the levies. This dynamic tax strategy enables the administration to balance domestic energy security needs with shifting global market conditions, ensuring local refiners maintain adequate stock levels while responding flexibly to fluctuating international petroleum rates.
The Key points
- The government eliminated the Rs 2.5 per litre export duty on petrol.
- The levy on high-speed diesel exports rose from Rs 8.5 to Rs 11.5 per litre.
- Aviation turbine fuel (ATF) export tax increased slightly to Rs 11 per litre.
- All updated tax rates became effective on October 31.
- These duties were originally established in March due to the West Asia crisis.
- The primary goal of these levies is to safeguard domestic fuel availability.
- Authorities conduct fortnightly evaluations based on average global crude prices.
- The Ministry of Finance issued separate notifications via the Department of Revenue.
- Frequent adjustments reflect ongoing volatility in international energy markets.
- The mechanism helps authorities balance local supply needs with export dynamics.
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