The Indian government has announced a reduction of export duties on petrol, diesel and aviation turbine fuel (ATF) for the fortnight starting June 1, providing comfort to fuel exporters as the world energy markets have been rocked in the wake of the West Asia crisis.
According to an official statement issued on Saturday, the revised export duty on petrol has been fixed at ₹1.5 per litre. The duty on diesel has been reduced to ₹13.5 per litre, while aviation turbine fuel (ATF) will be charged an export duty of ₹9.5 per litre in the next two weeks.
We are at a time where political tension in West Asia is affecting the crude oil markets around the world and fuel supply chains. In order to get the export duties down, the Indian government aims to balance the demand for domestic fuel with the competitiveness of Indian petroleum in the international market.
Export duties on petroleum products are reviewed periodically based on international crude oil prices, refining margins and domestic energy requirements. The latest revision is expected to provide some relief to refiners and exporters who have been closely monitoring developments in global energy markets.
The move will help Indian refiners to improve export margins and keep enough of their own supply to domestic consumers, industry analysts say. The new rates will stay in place for the next two weeks after June 1, unless any such changes are made by the government.
The development is being watched closely by oil and gas companies, given a global oil and gas crisis, global energy market turbulence in general and the changing demand of oil markets in major countries.
As India is one of the world's largest consumers and refiners of petroleum products, changes in export duties have a considerable impact on fuel trade, refinery operations and overall economic activity. It is an indication of the government’s resolve to respond to the changing global market environment and protect national energy interests.
