India Raises Export Duties on Diesel and ATF Amid Global Oil Price Surge
Diesel duty raised to ₹55.5/l, ATF to ₹42/l; petrol remains nil: Centre
Business Standard
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The Indian government has increased export duties on diesel and aviation turbine fuel (ATF) to ₹55.5 and ₹42 per litre, respectively, while maintaining a nil duty on petrol. This decision aims to enhance domestic fuel availability in response to rising global oil prices, driven by geopolitical tensions in West Asia.
- 01Export duty on diesel increased from ₹21.5 to ₹55.5 per litre.
- 02ATF export duty raised from ₹29.5 to ₹42 per litre.
- 03Petrol export duty remains unchanged at nil.
- 04Changes effective immediately as per Finance Ministry notification.
- 05Hike aims to ensure domestic fuel availability amid rising global prices.
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The Indian government has announced a significant increase in export duties on diesel and aviation turbine fuel (ATF) in response to rising global oil prices. The export duty on diesel has surged from ₹21.5 to ₹55.5 per litre, while ATF duty has risen from ₹29.5 to ₹42 per litre. Petrol exports remain unaffected, with the duty still at nil. These changes were implemented immediately following a notification from the Ministry of Finance, citing the necessity for prompt action under the Central Excise Act, 1944. The adjustments come as Brent crude prices have exceeded $100 per barrel, influenced by geopolitical tensions in West Asia, particularly involving the US, Israel, and Iran, which have disrupted oil supply chains. The government aims to prevent exporters from profiting excessively from high global prices and to ensure adequate fuel availability for domestic consumers.
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This duty increase is expected to stabilize domestic fuel prices by ensuring that exporters do not benefit from elevated global prices, potentially leading to more affordable fuel for consumers in India.
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