The Centre has increased export duties on diesel and aviation turbine fuel (ATF), tightening measures aimed at ensuring adequate domestic fuel supplies amid continuing concerns over disruptions linked to the West Asia crisis.
A notification issued by the Department of Revenue said diesel exports will now attract a duty of Rs 14 per litre, while exports of ATF will face a levy of Rs 12.5 per litre. The revised rates will come into force from June 17.
There has been no change in export duties on petrol. Existing excise duties on petrol and diesel sold in the domestic market also remain unchanged.
The export levies, comprising Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC), were first imposed on petrol, diesel and ATF exports from March 27. The measures were introduced to discourage overseas shipments and prioritise domestic availability of petroleum products.
The government reviews these rates every fortnight. Officials said the duties are determined on the basis of average international prices of crude oil, petrol, diesel and ATF recorded since the previous review. The last revision took effect on June 1.
Centre says fuel supplies remain adequate
The revision comes on a day when the Petroleum Ministry sought to reassure consumers that supplies of petrol, diesel, LPG and natural gas remain sufficient across the country.
Addressing an inter-ministerial press briefing, Joint Secretary in the Petroleum Ministry Sujata Sharma said refineries are operating at optimum capacity and crude oil inventories are being maintained at required levels.
She urged citizens and industries to use energy responsibly and appealed to large industrial and commercial consumers to procure diesel through their designated consumer pumps rather than retail fuel stations.
Temporary diesel sale restrictions in place
According to the ministry, recent pressure on some retail fuel outlets has been caused by a shift in diesel purchases from bulk channels to retail pumps.
Officials said nearly 42 crore litres of diesel that were earlier supplied through consumer and bulk pumps moved to retail outlets during May, resulting in congestion and supply challenges at certain locations.
To ease the burden on retail stations, the government issued a notification on June 11 limiting diesel purchases at retail outlets to 200 litres per person per day.
Sharma said the restriction is temporary and expected to remain in place for around 90 days. She reiterated that the measure was introduced to prevent inconvenience to ordinary consumers and stressed that there is no shortage of petrol or diesel in the country.