- Petrol export duty increased to Rs 1.5 per litre for the next fortnight
- Diesel export duty raised to Rs 25 per litre effective immediately
- Export duty on aviation turbine fuel reduced to Rs 19 per litre
The Central Government has revised export duties on petrol, diesel and aviation turbine fuel (ATF), with the new rates set to remain in effect for the next fortnight.
The export levy on petrol has been raised to Rs 1.5 per litre, while the duty on diesel has been increased to Rs 25 per litre. The levy on ATF, however, has been trimmed to Rs 19 per litre.
There has been no change in the excise duty rates on petrol and diesel meant for domestic consumption, meaning the latest revision does not directly alter the existing domestic fuel tax structure.
ALSO READ: Govt Cuts Diesel, Aviation Fuel Export Windfall Tax; Petrol Duty Reduced To Zero
The changes come at a time when global crude oil prices remain elevated amid concerns over disruptions to energy supplies. Brent crude settled near $90 a barrel on Monday, while West Texas Intermediate traded above $86 after rising sharply in the previous session.
Aviation turbine fuel (ATF) prices for domestic airlines have been increased by 5.46%, or Rs 6.28 per litre, according to sources at Indian Oil Corporation Ltd. (IOCL). The price has been raised from Rs 115 per litre to Rs 121.28 per litre, marking the second consecutive monthly increase.
The latest increase will raise fuel costs for domestic airlines and could put pressure on airfares. However, changes in ticket prices also depend on passenger demand, competition and available network capacity.
IOCL sources said the latest increase follows a Rs 5 per litre hike on Aug. 1, when ATF prices for domestic airlines rose from Rs 110 per litre to Rs 115 per litre. ATF prices had been cut by Rs 5 per litre in July.
Jet fuel accounts for about 35% to 40% of an airline's overall operating expenditure in India, making ATF prices a key cost for domestic carriers.
The latest ATF increase comes as oil prices moved higher after their biggest gain in three weeks on Monday. Fresh hostilities between the US and Iran raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz.
ALSO READ: Flight Travel To Get Costlier? ATF Prices For Domestic Airlines Raised By Rs 6.28/Litre
Crude oil prices posted a marginal increase in August after a volatile month, with the market reacting to stop-start efforts to end the conflict and US pledges to cripple Iran's economy.
West Texas Intermediate traded above $86 a barrel after rising 2.8% in the previous session, while Brent settled near $90 a barrel on Monday.
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