The Indian government struck a bold chord in fuel policy on Saturday, escalating export duties on key fuels to protect local markets from global volatility. Diesel now carries a 55.5 rupees per liter export levy—up from 21.5—while aviation turbine fuel (ATF) rises to 42 rupees from 29.5. Petrol exporters continue to face no duty.
As crude prices swing wildly due to Middle East strife, this step ensures domestic fuel stocks aren’t drained by lucrative exports. ‘It’s about curbing undue profits from price arbitrage, not just boosting revenues,’ a government statement clarified.
Part of the dynamic windfall tax regime, these changes keep refinery margins in check while prioritizing India’s energy security. The move builds on March 26 duties imposed after conflict-driven oil spikes. February 28 attacks on Iran by the U.S. and Israel intensified the crisis, though an April 8 Iran-U.S. ceasefire has brought tentative calm.
On the aviation front, the government eyes VAT reductions on ATF levied by states. High taxes in places like Delhi and Maharashtra inflate costs at major airports. The Civil Aviation Ministry is in talks with states and departments, while airport fee cuts are under consideration through operator consultations.
This multifaceted approach underscores New Delhi’s resolve to shield consumers and industries from external shocks, fostering stability in an unpredictable energy landscape.
