The Centre has notified revised export duties on petroleum products for the next fortnight beginning May 1. According to the notification by the Ministry of Finance, export duty on diesel has been set at Rs 23 per litre, while aviation turbine fuel (ATF) will attract a duty of Rs 33 per litre. There will be no export duty on petrol, which continues at nil.
The government has also clarified that there is no change in excise duties on petrol and diesel meant for domestic consumption.
The latest revision marks a reduction in export duties compared to the previous fortnight. On April 11, diesel exports were taxed at Rs 55.5 per litre and ATF at Rs 42 per litre. Earlier, when the levy was introduced on March 27, duties stood at Rs 21.5 per litre for diesel and Rs 29.5 per litre for ATF.
The government said the export duty mechanism is aimed at ensuring adequate domestic availability of fuels, particularly in the backdrop of the ongoing West Asia crisis, which has disrupted global energy supply chains and pushed up prices.
By adjusting export duties, authorities seek to balance the incentive for refiners to export fuel with the need to maintain sufficient supplies within the country.
Export duties on petroleum products are being reviewed on a fortnightly basis, allowing the government to respond quickly to changes in international crude oil prices and refining margins.
Oil marketing companies are selling petrol and diesel at a loss of Rs 14 per litre and Rs 18 per litre, respectively, as elevated crude prices outpace capped retail fuel rates, squeezing marketing margins. Besides losses on petrol and diesel, the elevated energy prices post West Asia crisis are likely to leave companies with an under recovery of Rs 80,000 crore on cooking gas LPG in the current fiscal, s per rating agency ICRA.
Despite the losses, petrol and diesel prices across major Indian cities remained unchanged on April 30.
In the national capital, petrol is still selling at Rs 94.77 per litre, while diesel is priced at Rs 87.67 per litre. Rates are comparatively steeper in Mumbai, where petrol is being sold at Rs 103.50 per litre and diesel at about Rs 90.01 per litre.
Additionally, rumours were rife on social media about the hike in fuel prices in the country, which prompted the Press Information Bureau's fact-check unit to deny the claims that the Central government has increased petrol and diesel prices.
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