The Centre has lowered aviation turbine fuel prices for domestic airlines by Rs 5 per litre and revised export duties on petrol, diesel and ATF from July 1, while leaving domestic fuel taxes unchanged.
The Centre has reduced aviation turbine fuel (ATF) prices for Indian domestic airlines by Rs 5 per litre from July 1, alongside revising export duties on petrol, diesel and ATF. | ANI
Domestic airlines will pay less for aviation turbine fuel (ATF) from July 1 after the Centre reduced the fuel price by Rs 5 per litre, bringing the effective rate down to Rs 110 per litre. The revision comes alongside a fresh review of export duties on petroleum products, while taxes on petrol and diesel sold within the country remain unchanged.
The changes form part of the government’s fortnightly review of fuel export levies, introduced on March 27 to maintain domestic availability of petroleum products during the ongoing West Asia crisis. The revised export duties also take effect from July 1.
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According to the latest revisions, the export duty on petrol has been fixed at Rs 4 per litre, while diesel exports will attract a levy of Rs 8.5 per litre.
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A separate notification has set the Special Additional Excise Duty (SAED) on aviation turbine fuel exports at Rs 7.5 per litre.
The Ministry of Finance said the Road and Infrastructure Cess remains nil on these exports, making the SAED the entire export levy.
The government reviews export duties every two weeks by assessing the average international prices of crude oil, petrol, diesel and aviation turbine fuel during the preceding fortnight. The previous revision was announced on June 16.
The Centre has also widened the list of destinations exempt from these export duties.
Earlier, public sector oil companies exporting petrol, diesel and ATF to Nepal, Bhutan, Bangladesh and Sri Lanka were exempt from the levy. The exemption has now been extended to Mauritius and the Maldives.
The notifications do not alter the existing excise duty on petrol and diesel supplied for domestic consumption.
As a result, the revised levies will affect fuel exporters, while consumers purchasing petrol and diesel at retail outlets across India will not see any direct impact from the latest changes.
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