New Delhi: In a significant move aimed at safeguarding domestic fuel availability, the Centre has increased export duties on key petroleum products, including high-speed diesel and aviation turbine fuel (ATF), against the backdrop of rising global uncertainties linked to the West Asia crisis.
The government clarified that the decision is not intended to boost revenue but to prevent exporters from taking undue advantage of international price differences and to ensure energy security for the country.
Sharp Hike in Diesel Export Duty
The export duty on diesel has been increased sharply from ₹21.5 per litre to ₹55.5 per litre.
Officials said the move is designed to discourage excessive exports and ensure that sufficient quantities remain available for domestic consumption, especially at a time when global supply chains are under strain.
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ATF Duty Also Revised Upwards
Similarly, the export duty on Aviation Turbine Fuel (ATF) has been raised from ₹29.5 per litre to ₹42 per litre.
The revision reflects concerns over maintaining adequate fuel supplies for the aviation sector, which remains sensitive to fluctuations in global oil markets.
No Change in Petrol Export Duty
In contrast, the export duty on petrol has been kept unchanged and continues to remain nil.
Officials indicated that petrol duties are linked to prevailing crack margins and are subject to periodic review under an established government mechanism.
Government Clarifies Objective: Not Revenue, But Stability
The Finance Ministry emphasized that the primary objective of these duty revisions is not revenue generation.
Instead, the focus is on preventing exporters from exploiting price arbitrage opportunities and ensuring that domestic consumers are protected from volatility in international oil prices.
The government has introduced these changes through mechanisms such as Special Additional Excise Duty (SAED) and Road and Infrastructure Cess (RIC).
Energy Security in Focus Amid West Asia Crisis
Addressing an inter-ministerial briefing on recent developments in West Asia, Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Chaturvedi said the measures are part of a calibrated response to global uncertainties.
He highlighted that the aim is to prioritise domestic availability of diesel and ATF while ensuring India’s energy security amid volatile international markets and supply chain disruptions.
India Has Adequate Fuel Stocks, Says Government
Providing reassurance on fuel availability, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, stated that India currently has sufficient crude oil inventories to meet demand for the next two months.
She added that:
- LPG and PNG supplies remain comfortable
- Refineries are operating at full or above capacity
- Domestic LPG production has increased
Highlighting India’s import dependence, she noted that nearly 90% of LPG supplies were earlier routed through the Strait of Hormuz, prompting the government to prioritise domestic consumers.
Gradual Restoration of Commercial LPG Supplies
Officials also noted that commercial LPG supplies, which were initially curtailed due to global uncertainties, have been gradually restored.
Supply levels have increased from 20% to 50%, and now up to 70%, with around 30 lakh tonnes of LPG supplied to commercial consumers since March 14.
Indian Nationals, Shipping Remain Safe
Providing updates on maritime and citizen safety, Rajesh Kumar Sinha, Special Secretary in the Ministry of Ports, Shipping and Waterways, said 25 Indian nationals were safely repatriated from the Gulf region in the last 24 hours.
He also confirmed that no Indian-flagged vessels or seafarers have been affected recently.
India Engaging Global Partners on Crisis
External Affairs Ministry spokesperson Randhir Jaiswal said India is actively engaging with global partners on the evolving situation.
He noted that External Affairs Minister S. Jaishankar is currently in France attending the G7 Foreign Ministers’ Meeting, where discussions have included energy challenges, food security, and the broader implications of the West Asia conflict.
Government Monitoring Situation Closely
Meanwhile, Aseem R Mahajan, Additional Secretary (Gulf) in the External Affairs Ministry, assured that the government is closely monitoring developments in the region.
He emphasized that the safety and welfare of Indian citizens in West Asia remain a top priority, with a dedicated control room set up to assist nationals if needed.
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