India raises diesel, jet fuel export taxes as elevated energy prices persist; petrol duty unchanged – Firstpost

India has increased windfall taxes on diesel and aviation turbine fuel (ATF) exports for the next fortnight beginning June 16, while leaving the levy on petrol exports unchanged, as elevated global energy prices continue to keep fuel markets under pressure.

According to a government notification issued on Monday, the export duty on diesel has been raised to Rs14 per litre from Rs 13.5 per litre. The duty on ATF has been increased more sharply to Rs 12.5 per litre from Rs 9.5 per litre.

The export duty on petrol remains unchanged at Rs 1.5 per litre.

The revised rates will be applicable for the fortnight starting June 16 and come as India continues to monitor global fuel markets amid ongoing geopolitical tensions in West Asia, which have contributed to volatility in crude oil and refined product prices.

The export levies, imposed through the Special Additional Excise Duty (SAED), were first introduced on March 27 to discourage overseas shipments and ensure adequate domestic availability of petroleum products as disruptions in global energy markets intensified.

Under the latest revision, diesel exports will attract an SAED of Rs 14 per litre, while ATF exports will face an SAED of Rs 12.5 per litre. Petrol exports will continue to attract an SAED of Rs 1.5 per litre. No Road and Infrastructure Cess (RIC) has been imposed on any of the three fuels under the revised structure.

The government reviews these duties every fortnight based on average international prices of crude oil, petrol, diesel and ATF prevailing during the previous review period.

In the last review effective June 1, the export duty was fixed at Rs 13.5 per litre on diesel, Rs 9.5 per litre on ATF and Rs 1.5 per litre on petrol.

The latest increase, particularly in the levy on aviation fuel, reflects concerns that elevated international fuel prices could incentivise refiners to boost exports at the expense of domestic availability. By raising export duties, the government aims to make overseas sales less attractive and channel more supplies towards the local market.

India, one of Asia’s largest refining hubs, exports substantial volumes of diesel and aviation fuel to international markets. Changes in export duties can influence refining economics and export flows, especially during periods of heightened volatility in global energy markets.

The move comes as policymakers remain watchful of developments in West Asia, where geopolitical tensions have periodically raised concerns over crude oil supplies and shipping routes, contributing to fluctuations in energy prices worldwide.