Excise Duty On Diesel And ATF Exports Reduced To Support Refiners Amid Global Crude Surge

India’s fortnightly duty review reflects a calibrated response to global crude volatility and geopolitical tensions. The move is expected to ease pressure on refiners, maintain competitiveness in international markets, and safeguard domestic supply chains.

Diesel Export Duty

Diesel export duty has been reduced sharply to ₹23 per litre. The waiver of the road and infrastructure cess for two weeks further supports exporters, ensuring refinery margins remain viable while balancing domestic availability.

ATF Export Duty

ATF export duty now stands at ₹33 per litre. This reduction is expected to stabilize aviation fuel supply, indirectly benefiting airlines by keeping operational costs in check amid rising global demand.

Global Context

Crude oil prices surged to $126 per barrel following supply disruptions in West Asia and tensions in the Strait of Hormuz. India’s diversified sourcing, including Russian crude, has helped mitigate risks, while windfall taxes imposed earlier continue to protect domestic consumers from inflationary shocks.

Key Highlights

• Diesel export duty cut to ₹23 per litre from ₹55.5
• ATF export duty reduced to ₹33 per litre from ₹42
• Road and infrastructure cess on diesel exports waived for two weeks
• Petrol export duty remains nil; domestic fuel prices unchanged
• Crude oil surged to $126 per barrel amid geopolitical tensions

Sources: Ministry of Finance, Economic Times, The Hindu, Business Standard, Times of India