The Indian government on Saturday announced a reduction in the special additional excise duty (SAED) on exports of diesel, petrol, and aviation turbine fuel (ATF), effective from June 1. The SAED on petrol exports has been lowered to Rs 1.5 per litre from the previous Rs 3 per litre. For diesel, the duty has been cut to Rs 13.5 per litre from Rs 16.5 per litre. The SAED on ATF has been significantly reduced to Rs 9.5 per litre from Rs 16 per litre.
No change in domestic excise duty
The government clarified that there would be no change in the existing excise duty rates on petrol and diesel meant for domestic consumption. The last revision of these export levies took place on March 16.
Background of export duties
Export levies on petrol, diesel, and ATF were first introduced on March 27 to ensure domestic availability of petroleum products by disincentivising exports amid the ongoing West Asia crisis. The rates are revised on a fortnightly basis and are determined based on the average international prices of crude oil, petrol, diesel, and ATF prevailing since the previous review.
The reduction in SAED comes as global crude oil prices have moderated, and the government aims to balance the interests of exporters while maintaining adequate domestic supply. Industry experts believe the move will boost refinery margins and encourage exports, particularly of diesel and ATF, which have seen higher demand in international markets.
