Centre Raises Petrol Export Duty, Halves Levy on Diesel Exports
The Centre has raised the export duty on petrol fivefold and nearly halved the levy on diesel exports, in its latest fortnightly review of fuel export taxes. The Finance Ministry notified the revised rates late on October 15, and they apply from Friday, October 16, for the coming fortnight.
The New Rates
The export duty on petrol has been raised from Rs 0.50 to Rs 2.50 per litre. On diesel, the combined Special Additional Excise Duty and road and infrastructure cess on exports has been cut from Rs 16 to Rs 8.50 per litre.
The export duty on aviation turbine fuel (ATF) is unchanged at Rs 10.50 per litre. According to PTI, the government first imposed export duties on diesel and ATF on March 27 and has revised them every fortnight since, with a levy on petrol exports added on May 16.
Why the Government Uses These Levies
The duties are linked to volatile crude prices following tensions in West Asia. By taxing exports, the government aims to discourage refiners from shipping fuel abroad for higher overseas margins and to keep enough supply in the domestic market.
The fortnightly reviews allow rates to be adjusted as global price gaps change. The latest cut on diesel suggests narrower export margins for that fuel, while the higher petrol duty points the other way.
What It Means for Consumers
The Finance Ministry said domestic duty rates on petrol and diesel are unchanged, and the revisions apply only to fuel bound for foreign markets. Retail prices at local pumps are not directly affected by this notification.
For commuters, transporters and farmers who rely on diesel, the larger significance is supply stability. Export curbs help guard against shortages at home during periods of global disruption. Fuel costs have long been a concern for households, as earlier IPB reports on fuel costs and private buses in Kolkata and India’s strategic crude reserves show.
The rates will be reviewed again at the end of the fortnight. How they move will depend largely on crude prices and the situation in West Asia.
Based on reporting by Business Today and The Federal (PTI).
Image: Deccan Chronicle (file).
