The Indian government has revised its tax structure on petroleum products, increasing the export duty on diesel and aviation turbine fuel (ATF). According to a notification issued by the government, the export duty on diesel is now set at ₹14 per liter, while for ATF, it is ₹12.5 per liter. However, there have been no changes to the export duty on petrol or the existing excise duty on petrol and diesel within the domestic market.
The revised rates came into effect on Tuesday, as stated in an official notification from the Revenue Department. The government regularly reviews these duties based on international energy market conditions, and the latest adjustments are a response to changes in the global prices of crude oil and petroleum products. The review process for the special additional excise duty and other related cesses on petroleum products occurs every 15 days, with the previous revision implemented on June 1. During the duty determination process, average international prices of crude oil, diesel, petrol, and ATF are analyzed to maintain a balance between the domestic and export markets.
Meanwhile, the Petroleum Ministry has assured that the country has ample reserves of petrol, diesel, LPG, and natural gas, dispelling any concerns about fuel availability. The ministry encourages both consumers and industries to use energy resources judiciously. Recently, at an inter-ministerial press briefing, Joint Secretary Sujata Sharma highlighted that increased demand in certain areas has put additional pressure on retail petrol pumps. She noted that in May, a significant amount of diesel purchases shifted from wholesale or consumer pumps to retail outlets, impacting distribution systems.
To address this, the government has advised large industrial and commercial consumers to rely on consumer pumps for their needs. Approximately 420 million liters of diesel consumption has trended towards retail outlets, prompting the government to set a temporary cap on diesel retail sales. According to the order issued on June 11, individuals can purchase a maximum of 200 liters of diesel per day from retail pumps, a measure that will be in place for a limited period.
This temporary measure, expected to last around 90 days, aims to balance the fuel distribution system and prevent inconvenience to the general public. Government officials assure that the country’s refineries are operating normally, and crude oil supply is sufficient, eliminating any fears of a fuel shortage.