Business · India Bureau
India Slashes Export Duties on Petrol, Diesel and Aviation Fuel
The government has reduced export duties on key petroleum products effective September 16, aiming to boost shipments abroad. Petrol now carries a nominal export levy of Rs 0.5 per litre, while diesel and aviation turbine fuel also face lower tariffs.
LSN India ·
India's Finance Ministry has announced a significant reduction in export duties on refined petroleum products, marking the latest adjustment to the country's energy trade policy. The revised duty structure, which came into effect on September 16, substantially lowers the tax burden on outbound shipments of petrol, diesel, and aviation turbine fuel (ATF).
Petrol exports will now attract a minimal duty of Rs 0.5 per litre, down from the previous rate. Diesel and ATF have similarly witnessed reductions in their respective export levies, according to official notifications issued by the Finance Ministry. The cuts reflect the government's effort to enhance the competitiveness of Indian petroleum products in global markets.
The move comes as India balances its domestic fuel requirements with opportunities to generate revenue through petroleum exports. Refiners have been seeking relief from export duties to maintain margins amid volatile global crude oil prices and intense international competition. The lower duty structure is expected to provide exporters greater flexibility in pricing and market access.
India, home to significant refining capacity, has increasingly positioned itself as a regional supplier of refined petroleum products. The duty reductions align with broader efforts to leverage the country's refining infrastructure and boost foreign exchange earnings from energy product sales. Industry observers expect the changes to have a positive impact on exports in the coming quarters.