The Indian central government has revised the tax structure related to petroleum products, increasing the export duty on diesel and aviation turbine fuel (ATF). According to the notification issued by the government, the export duty is now set at ₹14 per liter for diesel and ₹12.5 per liter for ATF. Notably, there have been no changes to the export duty on petrol or the existing excise duties on petrol and diesel in the domestic market.
The revised rates came into effect on Tuesday, as per an official notification from the Department of Revenue. The government periodically reviews these duties based on the conditions in the international energy market. The recent amendments are in response to fluctuations in global crude oil and petroleum product prices.
The special additional excise duty and other related cesses on petroleum products are reviewed every 15 days. Previously, changes to the duty rates were implemented from June 1. Officials assess the average international prices of crude oil, diesel, petrol, and ATF during the determination of duties to maintain a balance between domestic and export markets.
The Ministry of Petroleum has assured that there is an adequate stock of petrol, diesel, LPG, and natural gas in the country. Consumers have been advised not to worry about fuel availability. The government has also urged both citizens and industries to use energy resources judiciously.
In a recent inter-ministerial press briefing, Sujata Sharma, Joint Secretary of the ministry, highlighted that increased demand in certain areas has led to extra pressure on retail petrol pumps. She noted that in May, a significant volume of diesel purchases shifted from wholesale or consumer pumps to retail outlets, impacting the distribution system. Consequently, the government has advised large industrial and commercial consumers to use consumer pumps for their fuel requirements.
To ensure uninterrupted fuel availability for general consumers, the government imposed a temporary cap on retail diesel sales. An order issued on June 11 limits individuals to purchasing a maximum of 200 liters of diesel per day from retail pumps. This measure is intended to be in place for a limited period.
Officials state that this temporary regulation is expected to last approximately 90 days, aiming to balance the fuel distribution system and prevent potential inconvenience for general consumers. The ministry assures that refineries in the country are operating normally and there is sufficient availability of crude oil, ruling out any concerns regarding fuel shortages.