India Increases Export Duties on Diesel and Aviation Turbine Fuel
Govt increases duties on exports of Diesel and ATF
Hindustan Times
Image: Hindustan Times
The Indian government has raised export duties on diesel from ₹21.50 to ₹55.50 per litre and on aviation turbine fuel (ATF) from ₹29.50 to ₹42 per litre. This decision targets private refiners profiting from exports while domestic sales remain unprofitable amid rising international oil prices.
- 01Export duties on diesel raised from ₹21.50 to ₹55.50 per litre.
- 02Export duties on aviation turbine fuel (ATF) increased from ₹29.50 to ₹42 per litre.
- 03The increase aims to curb windfall profits by private refiners amid domestic fuel shortages.
- 04State-run oil companies dominate the domestic market, holding about 90% market share.
- 05Private retailers have been limiting sales and raising prices to manage losses.
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The Indian government has announced an increase in export duties on diesel and aviation turbine fuel (ATF) to address rising international oil prices and ensure sufficient domestic supply. Effective immediately, the duty on diesel has been raised from ₹21.50 to ₹55.50 per litre, while the duty on ATF has increased from ₹29.50 to ₹42 per litre. This move targets private refiners who have been exporting these fuels at high profits while limiting domestic sales. State-run oil marketing companies (OMCs) like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) dominate the domestic market, holding a 90% market share. Despite incurring losses on domestic sales, private retailers have been raising prices slightly and rationing fuel to minimize losses. The government had initially imposed these duties on March 27 to ensure adequate domestic availability amid the ongoing geopolitical tensions in West Asia.
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This increase in export duties is expected to stabilize domestic fuel prices and ensure availability, which may benefit consumers in the long run despite potential short-term price hikes.
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