India Revises Fuel Export Duties: Petrol, Diesel Up, ATF Down

The Central Government has revised export duties on petrol, diesel, and aviation turbine fuel (ATF), effective for the next two weeks. These adjustments respond to the current economic landscape, setting new levies for the upcoming fortnight.

Key Export Duty Changes

• The export levy on petrol has increased to Rs 1.5 per litre.
• Duty on diesel has significantly risen to Rs 25 per litre.
• Conversely, the export duty for ATF has been trimmed to Rs 19 per litre.

It is important to note that these changes specifically target export duties and do not impact the excise duty rates applied to petrol and diesel designated for domestic consumption within India.

Global Crude Oil Impact

These revisions coincide with elevated global crude oil prices. Brent crude has recently settled near $90 a barrel, while West Texas Intermediate (WTI) is trading above $86.

The surge in oil prices is partly attributed to renewed tensions between the US and Iran, which have sparked concerns about potential disruptions to energy supplies passing through the crucial Strait of Hormuz.

Domestic Aviation Fuel Costs Rise

In a related development, domestic ATF prices for airlines have seen a notable increase. This marks the second consecutive monthly hike in jet fuel costs.

• Domestic ATF prices for airlines rose by 5.46%.
• This translates to an increase of Rs 6.28 per litre.
• The new price for domestic ATF stands at Rs 121.28 per litre.

Aviation turbine fuel accounts for a significant portion of an airline’s operational expenses, typically ranging from 35% to 40% of total operating costs. This sustained increase in fuel prices could potentially lead to higher airfares for consumers.