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New export duty rules for fuel from May 16

The Centre has revised export taxes on petroleum products, introducing a Special Additional Excise Duty (SAED) of ₹3 per litre on petrol exports and reducing duties on diesel and aviation turbine fuel (ATF). The new rates came into effect from May 16 as part of the government’s regular review of fuel export taxes.

Under the revised structure, diesel export duty has been reduced from ₹23 per litre to ₹16.5 per litre, while the levy on ATF has been cut from ₹33 per litre to ₹16 per litre. Petrol exports, which previously did not attract any export duty, will now be taxed at ₹3 per litre.

The government has clarified that the changes apply only to exports and will not affect fuel sold within the country. This means petrol and diesel prices for domestic consumers are not expected to see any immediate impact due to the latest revision.

Export duties on fuel are reviewed every two weeks and are linked to international crude oil and refined fuel prices. These periodic revisions are intended to help the government respond to fluctuations in the global energy market and maintain a balance between exports and domestic fuel availability.

The latest move comes at a time when global oil markets continue to experience uncertainty. The government had introduced export duties on petroleum products earlier to discourage excessive exports during periods of high international prices and to ensure adequate supplies within India.

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India cuts export duty on diesel, jet fuel

India has reduced export duties on diesel and aviation turbine fuel (ATF), offering some relief to refiners as global oil prices remain volatile. The new rates came into effect on May 1.

Export duty on diesel has been brought down to ₹23 per litre from ₹55.5, while jet fuel duty has been reduced to ₹33 per litre from ₹42. There is no export duty on petrol. Despite these changes, taxes on fuels sold within the country remain unchanged.

The decision comes at a time when global crude oil prices have surged due to ongoing geopolitical tensions and supply concerns, particularly in West Asia. As a major importer of crude oil, India is sensitive to such fluctuations, which can impact both fuel availability and pricing.

Earlier, the government had raised export duties to ensure enough fuel stayed within the country and to prevent companies from exporting more for higher profits. The latest move signals a shift, allowing refiners more flexibility while still keeping domestic supply stable.

For consumers, there is no immediate impact, as petrol and diesel prices at the pump remain steady. The government has maintained these rates to avoid passing on the burden of rising global prices to the public.

The changes also come as the aviation sector faces higher fuel costs, with ATF being a major expense for airlines. Lower export duties may help ease some of the pressure on fuel supply and pricing.

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