The export duty on petrol, diesel, and Aviation Turbine Fuel (ATF) has been lowered by the Ministry for the fortnight starting from June 1 after reviewing international prices of crude oil and petroleum products.
The government has reduced the export duty on petrol from Rs 3 per litre to Rs 1.5 per litre. The export duty on diesel has been cut from Rs 16.5 per litre to Rs 13.5 per litre.
The export duty on aviation turbine fuel (ATF) has been lowered from Rs 16 per litre to Rs 9.5 per litre. The new duties shall be applicable from June 1 onwards.
India's export duties on petroleum products are reviewed every two weeks, depending on the international market trends for crude oil and fuel.
The reduction reflects volatility in global energy markets amid ongoing geopolitical tensions. As fuel prices show some stability, there has been a reduction in the duties levied on exported petroleum products.
The purpose of the duties was to maintain adequate supplies of fuel domestically but allow for the continuation of exports when feasible.
The lower duties are expected to provide relief to refiners exporting fuel to overseas markets. Diesel remains India's largest refined fuel export, while ATF exports have also grown in recent years.
A reduction in export duty improves returns on shipments and makes exports more viable when international demand remains strong. Private refiners, which account for a large share of the country's fuel exports, are expected to benefit the most from the latest revision.
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The government has said there is no change in excise duties on petrol and diesel sold in the domestic market. The decision relates only to exports and does not directly affect retail fuel prices paid by consumers.
Petrol and diesel prices within the country continue to be influenced by a combination of global crude oil prices, taxes and marketing margins. The next review of export duties is expected in the middle of June. Any further revision will depend on movements in international crude and fuel prices over the coming weeks.