The Centre has revised export duties on diesel and aviation turbine fuel (ATF) for the next fortnight starting May 1, even as retail prices of petrol, diesel and LPG will remain unchanged for consumers, according to official notifications and a statement by Indian Oil Corporation (IOC).
The move comes at a time when global crude prices have surged, with Brent touching $126 per barrel amid geopolitical tensions in West Asia. Despite this, the government and oil marketing companies have sought to shield domestic consumers from the impact.
The Finance Ministry said export duty on diesel has been fixed at Rs 23 per litre, comprising Special Additional Excise Duty (SAED) of Rs 23, while ATF exports will attract a duty of Rs 33 per litre. Export duty on petrol continues to remain nil.
At the same time, central excise duty on petrol has been set at Rs 23 per litre and on diesel at Rs 33 per litre, effective May 1. The government has also reduced the additional excise duty on petrol to zero. These changes were notified under the Central Excise Act, 1944.
Retail prices remain insulated
Despite the adjustments in duties, IOC clarified that there will be no change in retail prices of petrol, diesel and domestic LPG.
“The retail prices of Petrol, Diesel and domestic LPG (14.2 kg cylinders) have remained unchanged, fully insulating domestic consumers from the recent increase in international fuel prices,” IOC said in a press release.
The company noted that nearly 90 per cent of petrol and diesel consumption in India is by the general public, which will not be affected. Prices of domestic LPG used by around 33 crore households, ATF for domestic airlines, and PDS kerosene will also remain unchanged.
Overall, about 80 per cent of petroleum products have seen no price change, while 4 per cent have recorded a decrease and 16 per cent have witnessed an increase, largely in industrial segments.
Bulk and commercial LPG cylinders, which account for less than 1 per cent of consumption, have seen a price hike. Similarly, bulk diesel and ATF supplied to international airlines have been revised upwards, in line with global trends.
What the duty revisions mean
Special Additional Excise Duty is a variable tax imposed on domestic crude and exported petroleum products such as petrol, diesel and ATF.
The latest revision marks the second change in fuel duties within a month. In April, the Centre had raised export duties significantly, with diesel at Rs 55.5 per litre and ATF at Rs 42 per litre.
The IOC said the current approach reflects a “calibrated and balanced approach” aimed at maintaining alignment with global markets while protecting domestic consumers.
New rules for aviation fuel
Separately, the Petroleum and Natural Gas Ministry has amended fuel regulations to reflect evolving industry practices.
Under a notification issued on April 22, aviation turbine fuel can now be blended with synthetic fuels. The change expands the definition of ATF under the Aviation Turbine Fuel (Regulation of Marketing) Order, 2001.
According to the gazette notification G.S.R. 301(E), ATF will now include a complex mixture of hydrocarbons conforming to IS 1571 specifications or blends with synthesised hydrocarbons as specified in IS 17081.
The amendment is aimed at bringing clarity to fuel standards amid increasing adoption of alternative and blended aviation fuels.