Big decision by Centre, diesel export duty increased to Rs 55.5
Government increases diesel export duty to Rs 55.5 per litre, aiming to regulate fuel exports and stabilize domestic supply.
New Delhi (The Uttam Hindu): The Government of India has increased the export duty on diesel and aviation turbine fuel in a major move aimed at stabilising domestic fuel supply. The export duty on diesel has been raised by ₹21.5 per litre to ₹55.5 per litre, while aviation turbine fuel duty has been increased from ₹29.5 to ₹42 per litre. No change has been made in petrol export duty which continues to remain at zero.
The decision comes amid volatility in global energy markets and is intended to ensure adequate fuel availability within the country. According to official sources, the move is not meant to boost revenue but to prevent exporters from taking undue advantage of the gap between international and domestic fuel prices. The step is part of the windfall tax framework under which duties are periodically revised to maintain a balance between refinery profits and domestic requirements.
The government is also exploring the possibility of reducing state VAT on aviation fuel with the Ministry of Civil Aviation holding discussions with states and other departments. High taxes in major states have led to elevated ATF prices at metro airports. Additionally, the Centre is considering lowering certain airport-related charges and may hold talks with airport operators to ease costs.
Fuel prices have surged due to ongoing tensions in West Asia particularly after the conflict involving the US, Israel and Iran disrupted global supply chains. Although a temporary ceasefire has provided some relief uncertainty continues to impact markets. In this backdrop, the government has decided to tighten export duties on diesel and ATF prioritising domestic supply and price stability.